The ratings on Morris Township, N.J.-based Honeywell International Inc. (Honeywell) reflect the company's strong business risk profile and modest financial risk profile. Standard&Poor's Ratings Services believes Honeywell's credit measures have improved significantly from low levels in 2008 and 2009, benefitting from good growth (about 10% expected in 2011) and a mid-teens EBITDA margin. In addition, the company has made some progress in reducing its underfunded pension status by contributing more than $2 billion over the past couple of years. Cash balances in excess of $3.5 billion at the end of June 2011, which provide some flexibility for Honeywell to pursue manageable acquisitions, support strong liquidity and provide some cushion for credit measures if they fall below our expectations
