Fitch rates ADT BBB+

Fitch Ratings said it assigned ADT Corp. an issuer default rating of BBB+ and short-term issuer default rating of F2.

The outlook is stable.

Fitch said it assigned the ratings in conjunction with the spinoff of ADT from Tyco International, Ltd.

ADT's ratings reflect the company's strong brand recognition, its national footprint and leading market position, recurring revenue base, sustainable free cash flow generation and solid liquidity, the agency said.

Concerns include emerging competition from non-traditional security service providers, risk associated with operating as an independent public company, and contingent liabilities, particularly tax liabilities, related to the spinoff, the agency noted.

The ratings incorporate ADT's strong competitive position as the largest residential security provider in the United States, Fitch said.

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