The ratings on U.K.-headquartered defense contractor BAE Systems PLC reflect our view of the group's strong competitive positions in the global defense market through a portfolio of diverse high-priority programs. BAE Systems is a global defense, aerospace, and security group. It provides a full range of products and services for air, land, and naval forces, as well as advanced electronics, security, information technology solutions, and support services. The group benefits from its good customer program and geographic diversity. The ratings are supported by our view of the favorable credit characteristics of the defense industry. We view BAE's business risk profile as "strong" under our criteria. These strengths are partly offset by the risk associated with potential additional acquisitions and a
