Moody's rates ADT Prime-2

Moody's Investors Service said it assigned a Prime-2 rating to ADT Corp. and affirmed the Baa2 senior unsecured rating.

The outlook remains stable.

Moody's said the Prime-2 short-term rating reflects its expectation that ADT will continue to maintain ample liquidity.

ADT will have roughly $300 million of cash on hand immediately after the spin-off from Tyco, and the agency said it anticipates roughly $400 million of annual free cash flow generation after subscriber contract purchases.

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