TEXT-S&P assigns ADT's notes 'BBB-' rating

Mon Jan 7, 2013 11:33am EST

Related Topics

Jan 7 - Standard & Poor's Ratings Services today assigned its 'BBB-'
issue-level rating to Boca Raton, Fl.-based ADT Corp.'s senior unsecured
notes. ADT intends to use the proceeds primarily to repurchase common stock,
which is consistent with its share repurchase plan announced in November 2012
(at which time we lowered our corporate credit rating on ADT to 'BBB-' from
'BBB').

The 'BBB-' corporate credit rating and stable outlook incorporate our 
expectation that ADT will repurchase up to $2.0 billion of shares over three 
years, which will be financed with a mix of debt and cash flow. In addition, 
the rating on ADT reflects our expectation that adjusted debt to EBITDA will 
increase to the mid-3x area in 2013, up from 2.7x in September 2012.

For the corporate credit rating rationale on ADT, see the research update 
published on Nov. 28, 2012.

RELATED CRITERIA AND RESEARCH
     -- Business Risk/Financial Risk Matrix Expanded, Sept. 18, 2012
     -- Liquidity Descriptors For Global Corporate Issuers, Sept. 28, 2011
     -- Use Of CreditWatch And Outlooks, Sept. 14, 2009
     -- Criteria Guidelines For Recovery Ratings, Aug. 10, 2009
     -- 2008 Corporate Criteria: Analytical Methodology, April 15, 2008
     -- 2008 Corporate Criteria: Rating Each Issue, April 15, 2008
     -- 2008 Corporate Criteria: Ratios And Adjustments, April 15, 2008

Temporary contact number: Katarzyna Nolan (917-679-5491).

Ratings List

ADT Corp. (The)
 Corporate Credit Rating             BBB-/Stable/A-3

New Ratings

ADT Corp. (The)
 Senior Unsecured Notes              BBB-

Complete ratings information is available to subscribers of RatingsDirect on 
the Global Credit Portal at www.globalcreditportal.com. All ratings affected 
by this rating action can be found on Standard & Poor's public Web site at 
www.standardandpoors.com. Use the Ratings search box located in the left 
column.
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