Moody's confirms Tyco; view developing

Moody's Investors Service said it has confirmed the long-term and short-term ratings of Tyco International Group SA, the principle debt issuer for Tyco International Ltd. and its consolidated subsidiaries collectively known as Tyco.

The outlook is developing.

Ratings confirmed with developing outlook include Tyco International Group SA's Baa3 for senior notes and debentures, shelf registration ratings of provisional Baa3 for senior debt securities, provisional Ba1 for subordinated debt securities, Baa3 senior unsecured debt rating for the $2.5 billion senior unsecured bank revolving credit agreements and Prime-3 for the short-term debt, Tyco International Ltd.'s shelf registration ratings of provisional Ba1 for senior debt securities, provisional Ba2 for subordinated debt securities and provisional Ba3 for preferred stock, Tyco International (U.S.) Inc.'s Baa2 for senior unsecured notes and debentures, Mallinckrodt Inc.'s Baa3 rating for senior unsecured notes, debentures and industrial revenue bonds and Raychem Corp.'s Baa3 rating on the senior unsecured notes.

The action reflects the company's strong financial performance offset by its willingness to consider a wide range of alternatives to further enhance shareholder value at the possible detriment of creditors, Moody's said.

The ratings acknowledge the company's strong free cash flow generation and meaningful progress in debt reduction, while the company makes progress dealing with its litigation overhang resulting from prior management scandals, which the company may resolve in fiscal 2006, Moody's said.

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