On Oct. 16, 2007, Standard&Poor's Ratings Services raised its long-term corporate credit rating on BAE Systems PLC to 'BBB+' from 'BBB'. The outlook is stable. At the same time, Standard&Poor's affirmed its 'A-2' short-term corporate credit rating on the company. About £2.7 billion of debt was outstanding on June 30, 2007. The upgrade reflects improving credit protection measures, benefiting from better profitability, cash flow generation, debt reduction, and generally favorable conditions in most markets. The ratings on BAE Systems reflect its strong competitive positions in the global defense market, its participation in an industry with generally favorable credit characteristics, its good customer and geographic diversity, and an overall appropriate financial profile. These factors are offset by
