Leading business positions in a majority of markets; Good operating diversity; Strong overall financial profile; and Conservative financial policy. Liability exposure from asbestos litigation and unfunded postretirement obligations; Cyclicality of most markets; and Weak profitability of the specialty materials segment. Ratings on Honeywell International Inc. reflect substantial operating diversity, solid competitive positions, a strong overall financial profile, and a conservative financial policy. The ratings also acknowledge the company's cyclical markets; fairly soft, albeit improving, commercial aircraft and business jet sectors; and liability exposure arising from asbestos litigation and unfunded postretirement obligations. The Morristown, N.J.-based company has about $5.1 billion of debt outstanding. Honeywell provides aerospace products and services, automation and control technologies for buildings and industries, transportation products, and specialty
