The ratings on Netherlands-based European Aeronautic Defence and Space Co. N.V. (EADS) are supported by the group's position as one of two global producers of large commercial aircraft, a competitive product portfolio across its businesses, and its conservative financial policy. The ratings take into account the cyclicality of the commercial aircraft business, high execution risk related to a group restructuring program, and the negative effect of the U.S. dollar-euro exchange rate. EADS is the world's second-largest aerospace firm, with 2007 revenues of more than €39 billion. About 70% of sales, primarily relating to the group's fully owned commercial aircraft manufacturer, Airbus, come from the civil aerospace segment and the remainder mainly from military activities. In the commercial aircraft segment, extremely
