Fitch to rate Tyco notes BBB+

Fitch Ratings said it expects to assign a rating of BBB+ to Tyco International Finance SA's planned $500 million issuance of senior unsecured five-year notes, guaranteed by Tyco International Ltd. (issuer default rating of BBB+).

The outlook is stable.

Proceeds will be available for general corporate purposes, including the repayment of existing debt.

Debt-to-EBITDA ratio, which was 1.5 times at June 26, could weaken toward a level slightly below 2x, the agency said. This level would be considered weak but within a normal range during an economic downturn.

Ratings are constrained by uncertainty about the timing and strength an eventual economic rebound, ongoing recovery in the credit markets and legacy litigation risks that pre-date Tyco's separation in 2007, the agency said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.