Fitch rates ADT notes BBB

Fitch Ratings said it assigned a BBB rating to ADT Corp.'s proposed offering of senior unsecured notes.

The new issue will be equal in right of payment with all other senior unsecured debt. The outlook is stable.

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

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 its spin-off from Tyco International, Ltd.

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