World class positions in most of the group's businesses Strong backlog Growing defense business High degree of financial flexibility Level of exposure to cyclical commercial aerospace market Structural disadvantage of dollar revenue base and a euro cost base Operational risk associated with re-structuring program Complexity of management structure The ratings on Netherlands-based European Aeronautic Defence and Space Co. N.V. (EADS) are supported by the group's position as one of two global producers of large commercial aircraft, a competitive product portfolio across its businesses, and its conservative financial policy. The ratings take into account the cyclicality of the commercial aircraft business, high execution risk related to a group restructuring program, and the negative effect of the U.S. dollar-euro exchange rate. EADS
