The rating on Sun Microsystems Inc. reflects the company's good, but not leading, position (based on all operating systems) in the highly competitive global server market, its relatively narrow market base--specifically in comparison with major competitors--and inconsistent profitability. Moderate debt levels and strong liquidity partially offset these factors. Although Sun has made consistent investment in new product development and has a significant base of relatively consistent service revenues, total revenue growth (excluding the effect of currency) remains a challenge. Revenues in fiscal-year-end June 2008 totaled $13.8 billion, about flat compared with the same period in the previous year. Sun's ability to achieve sustained, profitable revenue growth will in part depend on greater market penetration into the company's targeted customer base,