CHICAGO & NEW YORK, Sep 15, 2008 (BUSINESS WIRE) -- Fitch Ratings has upgraded the long-term ratings for Tyco International
Ltd. (NYSE: TYC), as well as the unconditionally guaranteed debt of its
wholly owned direct subsidiary Tyco International Finance S.A. (TIFSA),
to 'BBB+' from 'BBB'. Fitch has affirmed the existing short-term ratings
for TYC and TIFSA. The rating outlook is Stable.

-- Issuer Default Rating (IDR) upgraded to 'BBB+' from 'BBB';

-- Senior unsecured revolving credit facilities upgraded to 'BBB+' from
'BBB';

-- Senior unsecured notes upgraded to 'BBB+' from 'BBB';

-- Short-term IDR affirmed at 'F2'

-- Commercial Paper affirmed at 'F2'.

The ratings affect approximately $4.6 billion of debt outstanding at
June 27, 2008.

The upgrades reflect the resolution of several litigation issues, the
company's operating performance, and its adherence to conservative
financial policies subsequent to the spin-off of Tyco's healthcare and
electronics businesses in June 2007. Previously, the ratings
incorporated some uncertainty about the direction of Tyco's operating
strategy and discretionary spending as a stand-alone company following
the spin-offs. However, the company's operating performance continues to
improve gradually while it consolidates certain parts of its fire,
security and flow control businesses, upgrades its information and
reporting systems, and focuses on internal growth. Acquisition spending
has been modest and the company has largely completed its planned
divestiture of Earth Tech and other non-core businesses. Cash proceeds
from these divestitures, together with Tyco's solid operating cash flow,
have helped fund net share repurchases that totaled $756 million during
the last 12 months. Debt has been stable near the current level of $4.6
billion, contributing to credit protection measures that support Tyco's
'BBB+' long term ratings.

The upgrades also consider the resolution of bondholder litigation in
June 2008, including related concerns about the company's liquidity and
debt structure, when Tyco completed consent solicitations and exchange
offers. The settlement involved debt issued under the company's 1998 and
2003 indentures and included consent payments of $250 million by Tyco to
the bondholders.

Tyco's ratings also consider several rating concerns. Tyco still faces
litigation or disputes that revolve around taxes, alleged violations of
the Foreign Corrupt Practices Act and antitrust laws, environmental and
asbestos liabilities, and government investigations of governance and
accounting issues. A portion of these contingent liabilities represent
legacy activities and are shared with Covidien and Tyco Electronics. In
addition, Tyco continues to address material weaknesses in its internal
controls related to accounting for income taxes. Other rating concerns
include an uncertain economic outlook in some of Tyco's end-markets and
further actions needed to streamline certain businesses, particularly
the security business in continental Europe. The rating concerns are
partly offset by Tyco's leading market positions, geographic
diversification, and significant proportion of recurring revenue.

The previous resolution of Tyco's bondholder litigation helped to
clarify its debt structure and liquidity position. At the end of the
fiscal third quarter, liquidity included $1.3 billion of cash and $1
billion of availability under its bank revolvers, offset by $539 million
of debt maturities. Aside from the near term maturities, there are no
scheduled debt repayments until 2011. In addition to on-balance sheet
debt of $4.6 billion, Tyco has a receivables securitization program that
is typically utilized for approximately $75 million and which is
reflected in the company's total adjusted debt to EBITDAR ratio of 2.2x
at June 27, 2008. The ratings and outlook incorporate Fitch's assumption
that debt will not change materially from existing levels and that
future acquisitions and share repurchases will be largely funded from
free cash flow.

Fitch's rating definitions and the terms of use of such ratings are
available on the agency's public site, www.fitchratings.com.
Published ratings, criteria and methodologies are available from this
site, at all times. Fitch's code of conduct, confidentiality, conflicts
of interest, affiliate firewall, compliance and other relevant policies
and procedures are also available from the 'Code of Conduct' section of
this site.

SOURCE: Fitch Ratings

Fitch Ratings 
Eric Ause, +1-312-606-2302 (Chicago) 
Craig Fraser, +1-212-908-0310 (New York) 
Media Relations: 
Cindy Stoller, +1-212-908-0526 (New York)

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