The ratings on Netherlands-based European Aeronautic Defence and Space Co. N.V. (EADS) are supported by the group'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 industry, execution risk related to the group's restructuring program and development risks for new aircraft, and the group's complex governance structure. EADS' greatest challenge is its exposure to significant currency risk as 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 largest aerospace firm, with
