Fitch to give Tyco notes BBB+

Fitch Ratings said it expects to assign a rating of BBB+ to $500 million of 10-year senior unsecured notes to be issued by Tyco International Finance SA.

The notes will be unconditionally guaranteed by Tyco International Ltd., the agency said, adding that proceeds will be available for general corporate purposes, including the repayment of debt outstanding under Tyco's revolving bank facilities and $215 million of long-term debt scheduled to mature in January 2009.

The existing ratings for the company include: issuer default rating at BBB+; senior unsecured revolving credit facilities at BBB+; senior unsecured notes at BBB+; short-term issuer default rating at F2; and commercial paper at F2.

The outlook is stable.

Fitch said that the ratings incorporate Tyco's conservative financial policies, its focus on further strengthening its operating capabilities, solid free cash flow, and well-established competitive positions in its global end-markets.

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