Moody's rates Tyco revolver Baa3

Moody's Investors Service said it affirmed the long-term and short-term debt ratings of Tyco International Group SA, the principle debt issuer for Tyco International Ltd. and its consolidated subsidiaries, assigned a Baa3 rating to Tyco Group SA's new $1 billion bank revolving credit facility and changed the outlook to positive from stable.

Moody's affirmed Tyco International Group SA's Baa3 rated senior notes and debentures, prospective Baa3 rated shelf registration, prospective Ba1 subordinated debt securities, Baa3 senior unsecured debt rating and prime-3 short-term debt rating, Tyco International Ltd.'s prospective Ba1 rated shelf registration rating, prospective Ba2 subordinated debt securities and prospective Ba3 preferred stock, Tyco International (US) Inc.'s Baa2 rated senior unsecured notes and debentures, ADT Operations Inc.'s Baa3 subordinated Liquid Yield Option Notes, Mallinckrodt Inc.'s Baa3 rated senior unsecured notes, debentures and industrial revenue bonds and Raychem Corp.'s Baa3 rated senior unsecured notes.

Moody's said the rating actions reflect Tyco's continued operational performance improvement, strong free cash flow generation and meaningful progress in debt reduction.

Despite the "headline risk" of the prior management scandals and litigation overhang, Moody's noted that Tyco's businesses have remained relatively strong, stemming from highly diversified operations, leading market positions and strong brand names.

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