S&P places Tyco ratings on watch; may upgrade
NEW YORK --Standard & Poor's Ratings Services on Friday said that it placed its ratings on Tyco International Ltd. and subsidiary Tyco International Finance SA on CreditWatch with positive implications.
S&P said the review includes Tyco International's "BBB" long-term corporate credit rating.
At the same time, S&P affirmed Tyco International Finance's "A-2" commercial paper rating, which is not being placed on CreditWatch.
"The CreditWatch listing reflects the possibility that Tyco's improved balance sheet and operating performance could support a higher rating, subject to a review of the company's financial policies," Standard & Poor's credit analyst Gregoire Buet said in a statement. "We intend to review Tyco's financial policies to determine whether these would be consistent with a one-notch upgrade and we will address in the outlook whether we expect further upside potential over the intermediate term."
Tyco shares rose 75 cents, or nearly 1.8 percent, to $43.36 in trading Friday. The shares have traded between $31.01 and $47.95 in the past year. 