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