Reuters: Mergers News: TEXT-Fitch maintains Tyco International on rating watch evolving following Pentair agreement

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TEXT-Fitch maintains Tyco International on rating watch evolving following Pentair agreement Mar 29th 2012, 12:47 Thu Mar 29, 2012 8:47am EDT March 29 - Fitch Rating's maintains Tyco International, Ltd.'s (Tyco; NYSE: TYC) and Tyco International Finance S.A.'s (TIFSA) ratings on Rating Watch Evolving following the announcement today that Tyco's Flow Control business will merge with Pentair Inc. The merged company will be named Pentair and be led by Pentair's CEO. The all-stock transaction is expected to occur concurrently with the completion of Tyco's planned spin offs of the Tyco Flow Control and ADT North America residential security businesses by the end of September 2012. Tyco Flow Control's merger with Pentair offers strategic opportunities for the combined business and eliminates redundant overhead costs. The merger also affects the future financial and operating profile of the Flow Control business which Fitch will review as part of Tyco's overall separation process. The rating watch will be resolved as further details become available regarding each stand-alone company's capitalization, financial leverage, operating performance, and other factors including the sharing of existing liabilities such as pension obligations, taxes, and various contingent liabilities. The next material step in Fitch's determination of the standalone ratings will consist of a review of Form 10's when they are filed. Fitch's currently rates Tyco and TIFSA as indicated: Tyco International Ltd. --Issuer Default Rating (IDR) 'A-'; --Senior unsecured notes 'A-'; --Short-term IDR 'F2'. Tyco International Finance S.A. --IDR 'A-' --Senior Unsecured Revolving Credit Facilities 'A-'; --Senior Unsecured Notes 'A-'; --Short-term IDR 'F2'; --Commercial Paper 'F2'. TIFSA is a wholly owned direct subsidiary of Tyco International Ltd. which guarantees TIFSA's debt. Link this Share this Digg this Email Reprints

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