Standard&Poor's ratings on Tyco International Ltd. and its industrial subsidiaries remain on CreditWatch with developing implications following Tyco's announcement that: It is no longer pursuing a break-up of the company and will not sell its plastics business, which was supposed to fetch about $3 billion. Tyco does, however, plan to divest 100% of its ownership interest in commercial finance arm, The CIT Group Inc., via an IPO. The SEC registration statement for the IPO indicates that proceeds could approximate $6.5 billion, well below Standard&Poor's previous expectations. Proceeds of the CIT IPO will be used for debt reduction at Tyco. Future free cash flows will be used for a combination of debt reduction, share repurchases, and scaled-back
