The ratings on Schaffhausen, Switzerland-based Tyco International Ltd. remain on CreditWatch with negative implications, where Standard&Poor's Ratings Services placed them on Sept. 19, 2011, following Tyco's announcement that it plans to separate into three independent companies. Tyco intends to spin off both its ADT North American residential security business and its flow control business and would retain the commercial security and fire-protection businesses. The proposed separation is subject to various conditions, including tax rulings and approval by Tyco's shareholders; the company expects to complete the separation during the third quarter of 2012. The remaining Tyco entity would have revenues of about $10 billion, and we estimate that EBITDA margins could be in the low to mid-teens. We currently
