Fitch lowers Tyco

Fitch Ratings said it removed Tyco International's ratings from evolving Rating Watch and downgraded the issuer default rating to BBB from BBB+ following the planned spinoffs of the health care (Covidien) and electronics (Tyco Electronics) businesses on June 29.

The company's issuer default rating, its senior unsecured revolving credit facility and senior unsecured notes were downgraded to BBB from BBB+. Its short-term issuer default rating is F2.

Fitch also assigned Tyco's bridge facilities for its senior unsecured bridge loan facility and letter of credit facility at BBB.

The outlook is stable.

The rating downgrade reflects Fitch's expectations for the company's financial and operating profile after the deal is completed. Tyco's ratings incorporate the absence of the relatively stable health care business and the streamlining and restructuring that await completion in Tyco's remaining businesses, the agency said.

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