Just a little patina. Just spray everything with some WD-40 and get it apart, clean it up, little grease, and it'll be sweet. Being so complete it's a great project to build a rat bike or restore. I've got a '54 Wasp that is twice as rusty but I dig the patina.
That bike has great patina. Strip it down, soak the mechanical bits, slap it together with some fresh grease, tires and tubes and you'll have an awesome rider.