Bulletin: Tyco International Ltd. Ratings Unaffected By Announcement Of Stock Repurchase
- ID: 1718306
- April 2011
- Region: Global
- Standard & Poors
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Research type: News
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NEW YORK (Standard & Poor's) April 28, 2011--Standard & Poor's Ratings Services said today that Tyco International Ltd.'s (Tyco; A-/Stable/A-2) announcement that its board of directors has authorized the repurchase of up to $1 billion of common stock does not affect the company's ratings or outlook. We do not believe the announcement signals a leveraging event. We expect that the company will pursue future shareholder initiatives in a way that will continue to preserve its credit measures, as well as its flexibility for acquisitions and for the resolution of its remaining legacy liabilities. While Tyco's recent share repurchase activity has been somewhat elevated--totaling about $1 billion over the past six months--the company has funded this with consistent free cash flow...
Companies mentioned in this report are: Tyco International Ltd.