Democrats Unlikely to Withhold Funding for Iraq NEW YORK, Nov. 15 /PRNewswire/ -- Despite their victory on Election Day, Standard & Poor's Equity Research Services believes that Democrat's majority in Congress is unlikely to impact the health of the aerospace and defense industry because of a number of longer term issues facing the industry. This and other findings are available in a semi-annual report, Aerospace & Defense: Industry Survey, published by Standard & Poor's, a leading provider of independent investment research. Standard & Poor's Equity Research believes that there are a number of factors at play, which will lead to sustained, long-term growth in the aerospace and defense industry. These factors include the looming need to upgrade military equipment following extended tours in Iraq and under- investment during the late 1990s and the early part of this century, continued spending on homeland defense and anti-terrorism systems, and the absence of a well-defined plan for early U.S. troop withdrawals from Iraq. "The results on Election Day and the removal of Donald Rumsfeld as Secretary of Defense have created a bit of uncertainty in the defense industry, but to date, The President's goal of stability in Iraq is still in place and that shouldn't be discounted when looking at shares of this group," said Richard Tortoriello, Aerospace & Defense Analyst, Standard & Poor's Equity Research Services. "On the aerospace side, we expect both commercial and business jet markets to remain strong, buoyed by global economic growth, and see prospects for a return to growth in the regional jet market, as U.S. carriers' financial health improves." Standard & Poor's Equity Research believes the following aerospace and defense companies are well positioned to grow. S&P has a "Strong Buy" recommendation (5-STARS out of 5) on L-3 Communications (NYSE: LLL; $80.93) due to strong position in the homeland defense space and numerous long-term government contracts. In addition, the S&P has "Buy" recommendations (4- STARS) on shares of The Boeing Company (NYSE: BA; $87.40) because of the growth of its commercial aerospace business coming at a time when its chief rival is struggling and its recent wins in the defense sector. Finally, S&P has a "Buy" on Lockhead Martin (NYSE:LMTNYSE:$88.55) due to its rising cash flows, attractive valuations and the increase in international sales for its F-16 fighter planes. To view a video clip of Standard & Poor's equity analyst Richard Tortoriello discussing the defense industry, please click here mms://a1802.v19724b.c19724.g.vm.akamaistream.net/7/1802/19724/v0001/streamlogics.download.akamai.com/25711/S_and_P/sptv-survey-54.wmv Standard & Poor's Industry Surveys provide a broad and fundamental overview of each industry's structure, its recent performance, and an analysis of trends that are expected to influence it in the future. Each Survey is organized into the following sections: Current Environment, Industry Profile/Industry Trends, How the Industry Operates, Key Industry Ratios and Statistics, How to Analyze a Company, Industry References, Comparative Company Analysis, and a Glossary of terms used in that industry. Both text and data are provided, as are references to additional sources of industry information. Two surveys on each industry are published each year. Readers can purchase Standard & Poor's Industry Surveys three ways: Online for immediate download at http://sandp.ecnext.com/, by telephone at 212-438-4052, or via e-mail order sent to . Members of the media can request a copy from the communications contact listed at the end of this release. The analyst quoted above is a Standard & Poor's equity analyst. He has no affiliation with any companies he covers, nor any ownership interest in any companies he covers. About Standard & Poor's Equity Research Services As the world's largest producer of independent equity research, over 1,000 institutions license Standard & Poor's research for their investors and advisors, including 19 of the top 20 securities firms, 13 of the top 20 banks, and 11 of the top 20 life insurance companies. Standard & Poor's team of 120 experienced U.S., European and Asian equity analysts use a fundamental, bottom-up approach to assess a global universe of approximately 2,000 equities across more than 120 industries worldwide. Follow Standard & Poor's equity analysts' U.S. market commentary each day at http://www.equityresearch.standardandpoors.com/. The equity research reports and recommendations provided by Standard & Poor's Equity Research Services are performed separately from any other analytic activity of Standard & Poor's. Standard & Poor's Equity Research Services has no access to non-public information received by other units of Standard & Poor's. Standard & Poor's does not trade on its own account. The analytical and ethical conduct of Standard & Poor's equity analysts is governed by the firm's Research Objectivity Policy, a copy of which may also be found at http://www.standardandpoors.com/. About Standard & Poor's Standard & Poor's, a division of The McGraw-Hill Companies (NYSE:MHP), is the world's foremost provider of financial market intelligence, including independent credit ratings, indices, risk evaluation, investment research and data. With approximately 7,500 employees, including wholly owned affiliates, located in 21 countries, Standard & Poor's is an essential part of the world's financial infrastructure and has played a leading role for more than 140 years in providing investors with the independent benchmarks they need to feel more confident about their investment and financial decisions. For more information, visit http://www.standardandpoors.com/. DATASOURCE: Standard & Poor's CONTACT: Ed Sweeney Communications Tel.: 212-438-6634 Web site: http://www.standardandpoors.com/ http://sandp.ecnext.com/

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