Fitch: Tyco agreement in line with outlook

Fitch Ratings said that Tyco International Ltd. announced an agreement to acquire Brink's Home Security Holdings, Inc., which operates under the name Broadview Security/

The transaction is consistent with Fitch ratings' positive outlook for Tyco due to the use of substantial equity, estimated operating synergies resulting from the combination of ADT and Broadview, and ADT's improved market position, according to the agency.

These benefits help offset the risk of integrating Broadview, Fitch said, adding that the price to acquire Broadview is about $2 billion.

Fitch added that its current ratings of BBB+/F2 and positive outlook for Tyco reflect the company's long-term operating improvements, steady progress in resolving legacy litigation matters, and strong leverage including debt/EBITDA of 1.6 times as of Sept. 25.

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