Fitch: Tyco outlook positive

Fitch Ratings said it has affirmed its BB+ rating on the senior unsecured debt of Tyco International Ltd. as well as the unconditionally guaranteed debt of its wholly owned direct subsidiary Tyco International Group S A.

The outlook has been revised to positive from stable.

Fitch said the change in outlook reflects evidence of progress in Tyco's implementation of operating improvements throughout the company together with a continuing favorable trend in the company's free cash flow that can be expected to lead to meaningful debt reduction during the next two to three years.

Tyco's debt structure has become considerably more manageable since the beginning of fiscal 2003 as a result of the refinancing or paydown of more than $8 billion of debt. Debt maturities through 2007 total $5.6 billion, of which the largest scheduled annual obligation is about $3 billion due in 2006, the agency said.

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