Industry Report Card: While Prospects For Commercial Aerospace Continue To Improve, The Defense Sector Faces Long-Term Challenges Jan 11

Standard & Poors, January 2011

Abstract
The commercial aerospace and defense sectors' credit quality depends on very different factors, in Standard & Poor's Ratings Services' view. Commercial aerospace is generally subject to changes in the global economy; therefore, we expect that gradually improving conditions should benefit these companies' credit quality. The financial performance of defense companies, on the other hand, depends more on government spending. Although we believe that the immediate prospects for the defense sector remain satisfactory, rising deficits in the U.S. and other countries will likely lead to slower future growth or cuts in military spending. The recovering global economy has helped stabilize the commercial aerospace market, which is now poised for growth. Global passenger air demand started to rebound in early 2010, following...

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Research Type: Commentary
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- Boeing Co.
- GenCorp Inc.
- General Dynamics Corp.
- Goodrich Corp.
- Kaman Corp.
- Moog Inc.
- Raytheon Co.
- Textron Inc.
- Hexcel Corp.
- BAE Systems PLC
- Finmeccanica SpA
- European Aeronautic Defence and Space Co. N.V.
- AAR Corp.
- Sequa Corp.
- Thales S.A.
- Bombardier Inc.
- Orbital Sciences Corp.
- BE Aerospace Inc.
- Alliant Techsystems Inc.
- Lockheed Martin Corp.
- Northrop Grumman Corp.
- Communications & Power Industries Inc.
- Hexel Corp
- L-3 Communications Corp.
- Precision Castparts Corp.
- TransDigm Inc.
- Rolls-Royce PLC
- Israel Aerospace Industries Ltd.
- Rockwell Collins Inc.
- Esterline Technologies Corp.
- Heckler & Koch GmbH
- AmeriQual Group LLC
- Spirit AeroSystems Inc.
- Embraer S.A.
- Hawker Beechcraft Inc.
- Wesco Aircraft Holdings Inc.
- DAE Aviation Holdings Inc.
- Hunter Defense Technologies Inc.
- Colt Defense LLC
- Triumph Group Inc.
- Kratos Defense & Security Solutions Inc.
- DynCorp International Inc.
- ARINC Inc.

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