The rating on TE Connectivity Ltd. (TE; f/k/a Tyco Electronics Ltd.) reflects Standard&Poor's Ratings Services' expectation that moderate revenue growth will continue in fiscal year 2012 and that the company will maintain margins at recent levels. Fully adjusted leverage, including a $470 million debt-like equivalent for TE's potential legacy tax settlement, is 2.08x as of June 30, 2012, up from the Dec. 31, 2011 level of 1.71x and reflecting the debt incurred to fund the $2 billion Deutsch Group acquisition in early 2012. We expect leverage to drop with repayment of $714 million of maturing debt in October 2012. Our "satisfactory" business risk profile is based on TE's leadership position in the fragmented connector market and specific strength
