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. The strike by Boeing's machinists union starting Sept. 2, 2005, resulted in a shutdown of the firm's jetliner operations, which account for about 45% of its revenues. Boeing's ability to withstand the financial impact of the strike is aided by substantial internal cash generation from its defense business (which is mostly not affected by the strike) and ample liquidity. Although the growth of the U.S. defense budget will likely slow materially in future
