Standard&Poor's Ratings Services' ratings on Portland, Ore.-based Precision Castparts Corp. reflect our expectations that the company's credit protection measures and liquidity, which are currently exceptionally strong with a funds from operations (FFO) to total debt ratio of over 300% and total debt to capital at about 5%, will remain appropriate for the ratings even with likely additional debt-financed acquisitions and the highly cyclical nature of the company's core markets. Precision Castparts' leading niche positions in most of its markets, some business diversity, efficient operations, and strong profitability and cash generation also support the ratings. We characterize its business risk profile as satisfactory and its financial risk profile as modest. Precision Castparts manufactures complex metal components and products, and
