The ratings on Honeywell International Inc. reflect its substantial operating diversity, solid competitive positions, and strong overall financial profile. The ratings also acknowledge the firm's cyclical and competitive markets, and liability exposure arising from asbestos litigation, environmental issues, and underfunded postretirement obligations. Standard&Poor's Ratings Services expects a balanced use of sizable free cash flow and cash balances, including debt reduction, to help preserve credit quality. Honeywell provides aerospace products and services, automation and control technologies for buildings and industries, transportation products, and specialty materials. The largest segment, aerospace (with about 35% of sales and the highest operating margins), saw a material increase in new jetliner deliveries in 2006, with further gains expected in 2007, which should aid original
