Fitch rates ADT notes BBB-

Fitch Ratings said it assigned a BBB- rating to ADT Corp.'s proposed offering of $500 million senior unsecured notes due 2019.

This issue will be equal in right of payment with all other senior unsecured debt.

The company has an issuer default rating of BBB-, revolving bank credit facility rating of BBB-, senior unsecured debt rating of BBB-, short-term issuer default rating of F3 and commercial-paper rating of F3.

The proceeds will be used to repay borrowings under the revolving credit facility, share repurchases and for general corporate purposes, Fitch said.

The outlook is stable.

The ratings reflect the company's strong brand recognition, 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, risks associated with operating as an independent public company and contingent liabilities related to its spin-off from Tyco International, Ltd., Fitch said.

The ratings also consider management's willingness to undertake a more aggressive financial strategy soon after becoming an independent company, as well as management's evolving financial strategy, the agency said.

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