The ratings on Pembroke, Bermuda-based Tyco Electronics Ltd. reflect its leading market share in the connector industry, substantial customer diversity, and adequate operating liquidity. Challenging conditions in several markets, depressed profitability, and weak cash flows offset these strengths. The ratings also reflect Tyco's exposure to legacy tax liabilities from its former parent. Tyco generated $14 billion in revenues for the 12 months ended December 2008, including $2.8 billion in the December (first fiscal of 2009) quarter. However, the December quarter was 21% below the year-ago period, and Standard&Poor's Ratings Services expects sales in the March 2009 quarter of about $2.4 billion, 32%-35% below March 2008 results. Operating profitability has dropped significantly, and we believe it likely will remain
