Ratings on Morristown, N.J.-based Honeywell International Inc. reflect substantial operating diversity, solid competitive positions, a strong overall financial profile, and a moderate financial policy. The ratings also acknowledge the company's cyclical markets; fairly soft, albeit improving, commercial aircraft and business jet sectors; and liability exposure arising from unfunded postretirement obligations and asbestos litigation. Honeywell provides aerospace products and services, automation and control technologies for buildings and industries, transportation products, and specialty materials. In the largest segment, aerospace (38% of estimated 2004 sales), the operating environment stabilized this year, especially in the commercial aircraft aftermarket, the firm's higher-margin business. In particular, recovering air traffic has started to benefit the aftermarket suppliers of products and services, including Honeywell, while a modest increase
