The ratings on Honeywell International Inc. reflect its substantial operating diversity, solid competitive positions, and fairly strong 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 significant moderation of share repurchases and debt reduction in the near term, to help preserve credit quality. Morris Township, N.J.-based Honeywell provides aerospace products and services, automation and control technologies for buildings and industries, transportation products, and specialty materials. In the aerospace segment (35% of 2007 sales and highest operating margins), a material increase in new jetliner deliveries should boost
