Florida-based alarm monitoring services company ADT Inc. has improved its financial risk profile through earnings growth, a trend we expect will continue on good operating momentum. We believe governance is improving because Apollo is selling down its ownership interest in ADT and reducing the number of board seats, demonstrating a willingness to relinquish control of the company. As a result, we raised our issuer credit ratings on ADT to ?BB? from ?BB-?. The stable outlook reflects our expectation that ADT will continue improving its credit characteristics such that free operating cash flow (FOCF) to debt will reach 10% in the next year and EBITDA margins will rise on business momentum. As Apollo?s equity holding declines, which is currently about 14%,
