Fitch rates Tyco notes A-

Fitch Ratings said it assigned a rating of A- to Tyco International Finance SA’s planned 10- and 30-year fixed-rate senior unsecured notes.

The proceeds will be used to fund the redemption of existing debt, including about $364 million of 8.5% notes due 2019, the agency said, and for general corporate purposes.

Fitch said it expects Tyco will use the majority of proceeds from the planned notes to repay existing debt and any related costs.

The new notes are guaranteed by Tyco International plc and Tyco Fire & Security Finance SCA.

The outlook is stable.

The agency said it expects Tyco’s credit metrics to be weak in the near term due to pressure on operating results due to challenging economic conditions in its end-markets and significant cash deployment for asbestos payments, acquisitions, share repurchases and restructuring.

The ratings also reflect the company’s well-established positions, improving cost structure, geographic diversification and solid liquidity, Fitch said.

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