Ratings on Morristown, N.J.-based Honeywell International Inc. reflect its substantial operating diversity, solid competitive positions, strong overall financial profile, and fairly conservative financial policy. The ratings also acknowledge the firm's cyclical markets and liability exposure arising from asbestos litigation and unfunded postretirement obligations. Honeywell provides aerospace products and services, automation and control technologies for buildings and industries, transportation products, and specialty materials. In the largest segment, aerospace (35%-40% of sales), recovering air traffic has benefited the firm's high-margin aftermarket part of the business. Moreover, a moderate increase in new jetliner deliveries has aided original equipment sales. Other operations, especially the corporate and general aviation businesses, rebounded noticeably from their sharp slowdown in 2003, with a material gain in deliveries expected
