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 its conservative financial policy. The ratings also take into account the cyclicality of the commercial airplane business, the high execution risk related to the group's restructuring program, and the negative effect of the worsening U.S. dollar-euro exchange rate. EADS is the world's second-largest aerospace firm, with 2007 revenues estimated at about €39 billion. About 70% of sales, primarily relating to the group's fully owned commercial aircraft manufacturer, Airbus, are made in civil aerospace, and the remainder is made mainly in military activities. Airbus
