S&P places Tyco on negative watch

Standard & Poor's said it placed its ratings on Bermuda-based Tyco International Ltd. and its subsidiaries on CreditWatch with negative implications, including the BBB+ corporate credit rating, BBB+ senior unsecured debt rating and A-2 commercial paper rating.

The rating actions follow the company's comment that it will consider a full range of possibilities to unlock shareholder value, the agency said.

Tyco did not specify the potential actions it may take. However, several actions could lead to erosion of its credit profile, the agency said, including any very aggressive share repurchases, the sale or spin-off of businesses or a leveraged recapitalization of the company.

S&P said that while it has noted the company's evolving set of financial polices as a credit weakness and an impediment to higher ratings in the past, Tyco's current ratings do not incorporate the potential for such an aggressive stance

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