Fitch rates ADT notes BBB-

Fitch Ratings said it assigned a BBB- rating to ADT Corp.’s proposed offering of $400 million senior unsecured notes. This issue will be equal in right of payment with all other senior unsecured debt.

The outlook is stable.

Proceeds will be used to repay borrowings under the revolving credit facility and for general corporate purposes.

Fitch said the ratings and outlook reflect ADT’s strong brand recognition, its national footprint and leading market position, recurring revenue base, sustainable free cash flow generation and solid liquidity.

Concerns include emerging competition from non-traditional security service providers, risk associated with operating as an independent public company, and contingent liabilities, particularly tax liabilities, related to its spinoff from Tyco International, Ltd., the agency said.

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