The ratings on Honeywell International Inc. take into account the European Commission's decision to reject the proposed acquisition of Honeywell by General Electric Co. (AAA/Stable/A-1+). The European action eliminated the potential for improved credit quality that would have resulted had Honeywell combined with financially stronger General Electric. The ratings on Morristown, N.J.-based Honeywell reflect substantial operating diversity, solid competitive positions, a strong financial profile, and a moderate financial policy. The firm provides aerospace products and services (40% of 2000 revenues), automation and control technologies for buildings (30%), performance materials (16%; specialty chemicals, fibers, plastics, and electronic and advanced materials), and power and transportation products (14%). About half of revenues are derived from the more stable aftermarket. The current market environment
