The ratings on Netherlands-based European Aeronautic Defence and Space Co. N.V. (EADS) reflect Standard&Poor's Ratings Services' view of the company's position as one of two global producers of large commercial aircraft, EADS' 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, development risks for new aircraft, and complex governance. 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 company manages its currency risk through a substantial hedging portfolio. EADS is the world's largest aerospace firm,
