The ratings reflect Tyco International Ltd.'s leading market positions, broad business mix, superior cash flow generation, and moderate financial policies, tempered by an aggressive growth strategy. Hamilton, Bermuda-based Tyco is a diversified company with leading positions in electronics, disposable healthcare and specialty products, fire and security services, flow control, and telecommunications. The company has grown rapidly via acquisitions, expanding its revenue base to more than $30 billion from about $5 billion just four years ago. Most of Tyco's businesses enjoy attractive growth rates, and a number of them have a high-margin service component that provides a steady stream of recurring revenues. Following each acquisition, Tyco moves quickly to lower costs through plant rationalization, streamlining operations, and increasing economies of scale.
