EADS has generated solid free cash flow and paid out very moderate dividend distributions over the past few years. We consider that EADS' financial risk profile has improved to the higher end of our category "modest". We are therefore revising the outlook to positive and affirming the 'A-/A-2' ratings. We could raise the ratings over the next 24 months if EADS can manage the project risk on the A350XWB aircraft, while maintaining its "modest" financial risk profile. On Sept. 20, 2011, Standard&Poor's Ratings Services revised its outlook on Netherlands-based European Aeronautic Defence and Space Co. N.V. (EADS) to positive from stable. At the same time, we affirmed our 'A-/A-2' long- and short-term corporate credit ratings on the group.
