The investment-grade ratings on Tyco International Ltd. reflect its strong business profile, with leading positions across an array of industrial and consumer related markets, its intermediate financial profile, and significant financial flexibility. The ratings also incorporate about $4 billion of potential payment for adverse developments relative to ongoing operational and litigation contingencies. Tyco International, with more than $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
