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; f/k/a Tyco Electronics Ltd.) reflects Standard&Poor's Ratings Services' expectation that moderate revenue growth will continue in fiscal year 2012 and that the company will maintain margins at recent levels. Fully adjusted leverage, including a $470 million debt-like equivalent for TE's potential legacy tax settlement, is 1.71x as of Dec. 31, 2011. Following the additional debt that will be used to fund the $2 billion Deutsch Group acquisition, we expect leverage to remain below 2x on a pro forma basis, consistent with our
