The rating on TE Connectivity Ltd. ("TE", formerly known as 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 1.7x as of June 30, 2011. Funds from operations to debt is 40%, consistent with our intermediate financial risk profile. Our satisfactory business profile is based on TE's leadership position in the fragmented connector market and specific strength as a supplier to the automotive industry, in addition to serving a diverse number of other end markets. Competitive pressures that require the company to continually
