Fitch Ratings Upgrades TE Connectivity's IDR To 'A-'; Outlook Stable

(RTTNews) - Fitch Ratings said Friday that it has upgraded the Long-term Issuer Default Ratings for TE Connectivity Ltd. (TEL) and its wholly owned subsidiary, Tyco Electronics Group S.A. to 'A-' from 'BBB+'.

In addition, Fitch affirmed the Short-term IDRs for both companies at 'F2'. The Rating Outlook is Stable.

Fitch's actions affect about $3 billion of total debt.

Fitch said the ratings and Outlook reflect its expectations for strong profitability and annual free cash flow through the business cycle, continued top line benefits from diversified sales portfolio and conservative financial policies.

Fitch expects the company's end market and geographic diversification will drive solid top line growth over the longer-term, albeit within a cyclical context. For fiscal 2014, Fitch expects solid global automotive production, strong commercial aerospace orders and recovering industrial equipment markets to offset declining personal computing, slow mid- and down-stream energy and weak telecom markets to drive mid-single digit revenue growth.