The ratings on Honeywell International Inc. reflect its substantial operating diversity, solid competitive positions, and modest financial risk profile. The ratings also take into account the company's cyclical and competitive markets, and material (although decreasing) liability exposure arising from asbestos litigation, environmental issues, and underfunded postretirement obligations. A balanced use of sizable free cash flow and cash balances, including debt reduction, should help to preserve credit quality. Morris Township, N.J.-based Honeywell is a leading global provider of aerospace products and services, automation and control technologies for buildings and industries, transportation products, and specialty materials. In the aerospace segment (about 36% of sales) results have weakened in 2009, with sales and operating margins down due to decreased demand in the commercial
