The ratings on Pembroke, Bermuda-based Tyco International Ltd. reflect the company's above-average business profile, its moderate financial policies, and its improving financial flexibility. The ratings incorporate tolerance for a prescribed level (up to $4 billion) of adverse developments relative to ongoing operational and litigation contingencies. Tyco International, with approximately $37 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 diversity (over 40% of sales outside North America); 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,
