The ratings on Chicago, Ill.-based Boeing Co. are supported by its very strong position in defense and military space sectors, its position as one of two global producers of large commercial aircraft, efficient operations, and good overall financial performance, especially solid cash flow generation and strong liquidity. Although the growth of the U.S. defense budget will likely slow materially in future years compared to recent years, the funding levels available to military suppliers are expected to remain substantial. The firm is one of the largest defense contractors, with diversified operations and a number of major, well-positioned programs and good profitability. In 2005, defense and space activities are estimated at 55% to 60% of revenues and a majority of earnings, with
