Standard&Poor's said today that Tyco International Ltd.'s (A/Stable/A-1) announcement that it plans to acquire unrated McGrath RentCorp will not result in a change to its ratings or outlook on Tyco International Ltd. or its wholly owned commercial finance subsidiary, Tyco Capital Corp. (A+/Stable/A-1) The acquisition of McGrath, a small, highly profitable rental provider of modular offices and classrooms and electronic test equipment, adds to Tyco Capital's large existing equipment rental and lease operation and recurring revenue base. The risks associated with Tyco's aggressive growth-via-acquisition strategy are factored into the existing ratings. The total acquisition cost is $482 million, including $108 million of assumed net debt. At least half of the consideration for the McGrath shares will be in
