Leading business positions in a majority of markets; Good operating diversity; Recent progress on reducing funded debt and contributing stock to pension plans; and Strong free cash flow generation. Cyclical end markets; and Still-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, and material (although decreasing) liability exposure from asbestos litigation, environmental issues, and underfunded postretirement obligations. A balanced use of sizable free cash flow and cash balances, including debt reduction, should help to preserve credit quality. Morris Township, N.J.-based Honeywell is a leading global provider of aerospace products and
