S&P keeps Tyco International on watch

Standard & Poor's said that Tyco International Ltd.'s BBB+ corporate credit rating and all other ratings remain on CreditWatch with negative implications, where they were placed on Nov. 16, following Tyco's announcement that the company would consider a full range of options to unlock shareholder value.

The proposed rating reflects Tyco's post-separation business profile, which despite the loss of the healthcare and electronics units, will still benefit from significant business and geographic diversity and leading positions in large, though fragmented and highly competitive markets that have moderate growth prospects, S&P noted.

Although certain of Tyco's business segments are not yet operating at optimal levels, the agency said that the company is expected to generate adequate overall pro forma profitability and cash flow.

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