The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.


All material subject to strictly enforced copyright laws. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.

Tyco given boost by Moody's

Tyco's reputation moved a step closer to respectability after Moody's, the ratings agency, affirmed the long and short-term debt ratings of Tyco International, giving a Baa3 rating to its £1 billion revolving credit facility and changed its ratings outlook to positive from stable. Strong cash flow is cited as one of the main reasons for the positive outlook combined with proceeds from the sale of a number of key assets.

?Continued operating improvements, strong cash flow generation and further debt reduction would be viewed favourably,? notes the ratings agency. ?More specifically, free cash flow-to-adjusted debt in the 20%-25% range, return on assets approaching 10% and debt-to-EBITDA strengthening to less than two times, combined with the resolution of ongoing investigations and legal matters within the $3 billion threshold, could result in a favourable rating action prior to the company's fiscal year end (September 30th).

?On the other hand, a divergence from the current strategy of emphasizing organic growth and debt reduction, a significant decline in operating performance and cash flows, along with adverse litigation decisions against the company in excess of the $3 billion threshold could have a stabilizing impact on the rating/outlook.?

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree