Our 'A' rating on Honeywell International Inc. is derived from: Our anchor of 'a', based on our "strong" business risk and "modest" financial risk profile assessments for the company. We selected an 'a' anchor instead of 'a+' because we believe that a large portion of the conglomerate's diversification benefits are accounted for in the diversification/portfolio effect described below. Our assessment of Honeywell's diversification/portfolio effect as "moderate" provides one notch of rating uplift, while our assessment of its financial policy as "negative" lowers the rating by one notch, resulting in the 'A' corporate credit rating. Solid diversification across the capital goods, aerospace and defense, and chemicals sectors. Track record of effective execution that supports average aggregate and reasonably stable profitability. Exposure
