Strong competitive positions in most of the group's businesses. Strong financial flexibility with low maturities in the years 2011-2014 following payment of March 2010 maturity. Strong order backlog in both civil and military business (€454 billion at June 30, 2010). Gradually growing defense business and earnings contributions from this stable source of income. Structural disadvantage and risk of dollar oriented revenue base with a large euro cost base and gradually weakening hedge rates in 2010-2012. Level of exposure to cyclical commercial aerospace segment through the Airbus division. Level of operational risk associated with execution of re-structuring program and major aircraft programs. Complexity of management structure. The ratings on Netherlands-based European Aeronautic Defence and Space Co. N.V. (EADS) are supported by
