Honeywell International Inc. announced its intent to separate automation and aerospace to create three separate businesses, including its earlier announced advanced materials spin-off. The formation of three independent companies positions each to pursue a more tailored growth strategy in their respective sector. Nonetheless, S&P Global Ratings expects the separation will reduce Honeywell's overall scale and diversification. As a result, we are placing all of our ratings on Honeywell, including the 'A' issuer credit rating, on CreditWatch with negative implications. The CreditWatch placement reflects our view that Honeywell's three spin-offs will transform its competitive position. We believe the remaining entity will have lower product, end market, and geographic diversity, and a reduced mix of long and short cycle businesses. Honeywell?s aerospace
