The ratings on Rolls-Royce PLC reflect Standard&Poor's Ratings Services view of the group's strong market positions in the civil and military aviation industries, high share of more-stable aftermarket sales, and fairly diverse earnings base. In addition, Rolls-Royce enjoys strong and relatively stable cash generation and, in our view, demonstrates good liquidity management. We consider these factors to be partly tempered by the highly competitive and cyclical nature of the industries in which the group operates, and the general risks arising from highly volatile air traffic volumes. The group is one of the world's largest civil aero-engine providers and also manufactures equipment for the defense, marine, and energy sectors. Civil aviation contracts account for about 80% of the group's
