Leading business positions in a majority of markets; Good operating diversity; and Strong free cash flow generation. Cyclical end markets; and Sizable underfunded pension and other postretirement benefit obligations. The ratings on Honeywell International Inc. reflect its substantial operating diversity, solid competitive positions, and modest financial risk profile. The ratings also take into account the company's cyclical and competitive markets, less conservative than historical financial policy, and material (although decreasing) liability exposure arising from asbestos litigation, environmental issues, and underfunded postretirement obligations. A more balanced use of sizable free cash flow and cash balances, including debt reduction and a significant moderation of share repurchases, should help to preserve credit quality. Morris Township, N.J.-based Honeywell provides aerospace products and services, automation
