The investment-grade ratings on Pembroke, Bermuda-based Tyco International Ltd. reflect its above-average business profile, with leading positions across an array of industrial and consumer-related markets, its moderate financial policies, and improving financial flexibility. The ratings also incorporate about $4 billion of potential payment for adverse developments related to ongoing operational and litigation contingencies. Tyco International, with approximately $40 billion in revenues, 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 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
