The ratings on Morris Township, N.J.-based Honeywell International Inc. reflect its substantial operating diversity, solid competitive positions, and strong overall financial profile. The ratings also acknowledge the company'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. In the aerospace segment (about 35% of 2007 sales and highest operating margins), a material increase in new jetliner deliveries should boost original equipment sales. Also, air traffic growth, albeit at
