Ratings on Chicago, Ill.-based Boeing Co. are supported by its very strong position in defense and military space sectors that have modestly attractive growth prospects, its position as one of two global producers of large commercial aircraft with generally favorable long-term fundamentals, efficient operations, and good overall financial performance, especially solid cash flow generation and liquidity. The U.S. defense budget has been rising noticeably in recent years and is expected to grow in future years, but at a much lower rate. This has bolstered prospects for Boeing's military business. The firm is one of the largest defense contractors, with diversified operations and a number of major, well-positioned programs and good profitability. In 2004, defense and space activities should account for
