S&P lowers Tyco International

Standard & Poor's said it lowered its ratings on Tyco International Ltd., including its corporate credit rating to BBB from BBB+.

At the same time, S&P said it removed the ratings from CreditWatch, where they were listed with negative implications on Nov. 16, 2005.

The rating actions follow the implementation of the spin-off of the electronics and healthcare businesses into standalone companies, Tyco Electronics Ltd and Covidien Ltd, respectively, the agency said.

The agency added that it assigned its BBB rating to Tyco International Finance SA, a wholly owned subsidiary of Tyco and the primary issuer of its funded debt.

The ratings reflect Tyco's business profile, which despite the loss of the health care and electronics businesses will still benefit from significant business and geographic diversity and leading positions in large though fragmented and highly competitive markets that have moderate growth prospects, S&P noted.

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