The ratings on the U.K.-headquartered defense contractor BAE Systems PLC reflect Standard&Poor's Ratings Services' view of BAE Systems' strong competitive positions in the global defense market through a portfolio of diverse high-priority programs. BAE Systems designs, develops, and manufacturers a wide range of land-combat vehicles and armaments, defense electronics, submarines, surface combatants, military aircraft, and security electronics, and provides customer support services. The company benefits from its good customer, program, and geographic diversification. The ratings are also supported by our view of the favorable credit characteristics of the defense industry. The ratings incorporate our expectation that BAE Systems will continue to pursue a financial policy that we consider to be moderate. These strengths are partly offset by the
