The ratings on Chicago-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 ample liquidity. The ratings also take into account slowing growth in defense spending, the cyclicality of the commercial aerospace market, and sizable unfunded postretirement obligations. Boeing is one of the largest defense contractors in the world, with diversified operations and a number of major, well-positioned programs and good profitability. In 2005, defense and space activities are estimated at about 55% of revenues and a majority of earnings, with solid contributions anticipated to continue in 2006. Growth
