On July 15, 2005, Standard&Poor's Ratings Services placed its corporate credit rating on Tyco International Ltd. (TIL) and its corporate credit and senior unsecured ratings on TIL's subsidiaries on CreditWatch with positive implications. At the same time, we affirmed our 'A-2' commercial paper rating. At April 1, 2005, the Pembroke, Bermuda-based industrial conglomerate had about $16.5 billion in total debt outstanding. The CreditWatch listing underscores our opinion that Tyco's credit profile should continue to improve from favorable near-to-intermediate term earnings prospects, resulting from healthy industrial demand and internal operating initiatives. The crucial matters to be reviewed are: --*Tyco's evolving financial policies, including its appetite for share repurchases, dividend growth, pension funding, and additional debt reduction. We will also
