S&P cuts ADT

Standard & Poor's said it lowered its corporate credit and senior unsecured ratings on ADT Corp. to BBB- from BBB.

At the same time, the agency said it lowered its short-term rating on ADT to A-3 from A-2. The outlook is stable.

"The downgrade reflects ADT's plan to repurchase $2.0 billion of shares over three years, which it intends to finance with a mix of debt and cash flow," said S&P credit analyst Katarzyna Nolan in a news release.

The agency said it believes the planned repurchase indicates a more aggressive financial policy that will result in adjusted leverage in the mid-3x area, compared with about 2.7x as of Sept. 30.

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