Fitch Ratings on Monday affirmed the long-term and short-term investment-grade credit ratings of diversified manufacturer Tyco International Ltd. and its subsidiary.
The ratings agency affirms Tyco's IDR at BBB+; its senior unsecured revolving credit facilities at BBB+; its senior unsecured notes at BBB+; its short-term IDR at F2; and its commercial paper at F2.
The ratings affect approximately $4.3 billion of outstanding debt as of Sept. 25.
Fitch raised Tyco's rating outlook to positive from stable, reflecting the company's progress in resolving legacy litigation, its ongoing operating improvements and its conservative approach to managing its balance sheet.
Fitch said it could raise Tyco's ratings if it further reduces its legal liabilities and maintain its balance sheet as the economy recovers. Concerns include its legal issues, economic weakness and commodity costs.
Shares of fell 25 cents to close at $36.26 on Monday.