The ratings on Netherlands-based European Aeronautic Defence and Space Co. N.V. (EADS) are supported by the company's position as one of the two global producers of large commercial aircraft, the competitive product portfolio across its businesses, and a financial policy that we view as very conservative. Under our criteria, we classify EADS' business risk profile at the lower end of the "strong" category. The ratings take into account the cyclicality of the commercial airplane industry, execution risk related to the development of new aircraft, and a complex governance structure. EADS' greatest structural challenge in our view is its exposure to significant currency risks. About one-third of group sales is subject to currency transaction risks, as this share is not naturally
