The ratings reflect Tyco International Ltd.'s above-average business profile, moderate financial policies, and improving financial flexibility. The ratings incorporate some tolerance for adverse developments relative to ongoing operational and litigious contingencies. Tyco, with approximately $37 billion in revenue, is a diversified global manufacturer with operations in five primary sectors: electronics, health care, 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, which along with weakness in the general industrial markets and
