The ratings on Schaffhausen, Switzerland-based Tyco International Ltd. reflect the company's strong business profile, which benefits from significant business and geographic diversity, material recurring services-oriented revenues, and leading positions in large but fragmented and highly competitive markets that have moderate growth prospects. Tyco's financial profile is characterized by moderate financial leverage, including off-balance-sheet and remaining contingent liabilities, as well as the expectation that the company will pursue overall moderate financial policies that balance strategic and shareholder-friendly priorities while maintaining credit measures. Tyco's largest business segment is security (ADT Worldwide), which, together with the fire protection business, accounts for more than half of total revenues. Significant recurring revenues generated from monitoring and related activities partially offset the risks of customer attrition.
