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, its competitive product portfolio across its businesses, and a financial policy that we categorize as very conservative. Under our criteria, we assess EADS' business risk profile at the lower end of the category "strong". The ratings 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 its complex governance structure. EADS' greatest challenge is its exposure to significant currency risks, since about two-thirds of its revenues are in U.S. dollars, whereas most of its costs are in
