The ratings reflect Tyco International Ltd.'s above-average business profile, its moderate financial policies, and improved, but only fair, liquidity. The ratings incorporate modest tolerance for adverse developments relative to ongoing operational and litigious contingencies. Pembroke, Bermuda-based Tyco International (Tyco), with approximately $36 billion in revenues, is a diversified global manufacturer, with operations in five primary sectors: electronics, healthcare, fire and security, plastics, and the general industrial markets. Competitive strengths for the company include good end-market, customer, and geographic (43% of sales outside North America) diversity, leadership positions within several product lines, and a substantial base of recurring revenues, all of which provide a measure of earnings stability. Still, pricing pressures exist, particularly in the electronics business, and weakness in the
