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 and execution risk related to the group's restructuring program. EADS' greatest challenge is its exposure to significant currency risks, because about two-thirds of its revenues are in U.S. dollars, whereas most of its costs are in euros. The currency risk is managed by a substantial hedging portfolio. EADS is the world's second-largest aerospace firm, with 2008 revenues of over €43 billion. About 60% of sales is
