The ratings reflect Pembroke, Bermuda-based Tyco International Ltd.'s business profile, which benefits from significant business and geographic diversity as well as leading positions in large but fragmented and highly competitive markets that have moderate growth prospects. Although some of Tyco's business segments (particularly the ADT business) are not yet operating at optimal levels, Standard&Poor's Ratings Services expects the company to generate adequate overall pro forma profitability (about $2.6 billion of pro forma EBITDA and $1.1 billion of free cash flow) in fiscal 2006. The fire and security business accounts for about two-thirds of Tyco's total revenues, benefiting from a leading position in the $30 billion global residential and commercial security monitoring industry. However, the market is highly fragmented
