Moody's: ADT view negative

Moody's Investors Service said it lowered ADT Corp.'s outlook to negative from stable after management's announcement that it will use incremental debt to fund share repurchases and raise target leverage to 2 times debt/EBITDA.

At the same time, Moody's affirmed ADT's Baa2 senior unsecured rating and Prime-2 short-term rating.

"The negative ratings outlook reflects our concern that ADT's financial policies could continue to evolve to the detriment of debt holders," Moody's analyst Suzanne Wingo said in a news release.

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