The ratings on Morris Township, N.J.-based Honeywell International Inc. reflect its strong business risk profile and modest financial risk profile, although credit measures are somewhat weak relative to our expectations for the current ratings. Standard&Poor's Ratings Services expects the company's revenues to increase moderately (about 5%) in 2010 as broader economic conditions improve. This should help return adjusted funds from operations (FFO) to total debt toward our expected range of 45% to 50% from recent levels of less than 40%. Cash balances in excess of $2 billion, which provide some flexibility for the company to pursue manageable acquisitions, support strong liquidity. The ratings also take into account the company's cyclical and competitive markets, and material (although decreasing) liability
