The ratings on Honeywell International Inc. reflect its substantial operating diversity, solid competitive positions, and fairly strong overall financial profile. The ratings also take into account the company's cyclical and competitive markets, less conservative than historical financial policy, and material (although decreasing) liability exposure arising from asbestos litigation, environmental issues, and underfunded postretirement obligations. Standard&Poor's Ratings Services expects continued solid operating performance, but also a more balanced use of sizable free cash flow and cash balances in 2008, including debt reduction and a significant moderation of share repurchases 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
