Strong competitive positions in most of the European Aeronautic Defence and Space Co.'s businesses. Strong financial flexibility with a low absolute amount of financial liabilities maturing in 2010-2013, following refinancing of maturity 2010, and supported by existing cash balances. Strong order backlog in both civil and military business (€391 billion in June 2009). Gradually growing defense business and earnings contributions from this more stable industry. Currency mismatch between dollar-denominated revenues and euro cost base, and gradually weakening hedge rates in 2010 and 2011. Level of exposure to cyclical commercial aerospace segment through its Airbus division. Level of operational risk associated with execution of re-structuring program. Complexity of management structure. Our ratings on Netherlands-based European Aeronautic Defence and Space Co. N.V.
