Leading connector market share in growing markets; Prospects for leverage improvement; and Historically good free cash flows. Exposure to cyclical industries; Legacy tax liabilities; and Challenging broad market conditions. The rating on TE Connectivity Ltd. ("TE", formerly known as Tyco Electronics Ltd) reflects Standard&Poor's Ratings Services' expectation that revenue growth will continue in fiscal year 2011--supported by moderate organic growth and the inclusion of recently acquired ADC Communications--and that the company will maintain margins at recent levels. Fully adjusted leverage, including a $600 million debt-like equivalent for TE's potential legacy tax settlement, is 2x as of Dec. 31 2010, which captures the ADC-related debt. Funds from operations to debt is 37%, consistent with our intermediate financial risk profile.
