May 30, 2012 / 2:32 PM / 6 years ago

TEXT-Fitch affirms ABB's IDR, Thomas & Bett's notes rating

May 30 - Fitch Ratings has affirmed ABB Ltd's (ABB) Long-term
Issuer Default Rating (IDR) and Thomas & Betts Corporation's (TNB)
USD250 million 5.625% senior unsecured notes (the Notes) due in 2021 at 'BBB+',
following ABB's public announcement to guarantee the bonds.	
	
The agency has also affirmed ABB's, ABB International Finance Ltd's (ABB IF) and
ABB Treasury Center (USA), Inc's (ABB TC) senior unsecured ratings at 'BBB+' and
ABB's Short-term IDR at 'F2'. The ratings of the commercial paper programmes
issued by ABB Financial Services AB (ABB FS), ABB Capital B.V. (ABB Capital) and
ABB TC have been affirmed at 'F2'.	
	
ABB publicly announced last week its intention to guarantee TNB's USD250 million
5.625% senior unsecured notes due in 2021, following the completion of ABB's
acquisition of TNB.	
	
The rating action reflects ABB's strong financial profile and Fitch's view of a
likely repayment of the Notes by ABB, given that a strong linkage exists between
ABB and TNB. Linkage is demonstrated by the material purchase price for TNB and
ABB's rationale for the acquisition, including complementary and broader product
portfolio, expanded presence in North America and cost synergies.	
	
For the Notes, the acquisition is unlikely to represent a Change of Control
Triggering Event, which is defined in the indenture as occurring when the Notes
cease to be rated investment grade by rating agencies, within a specified time
frame, due to a change of control.	
	
Fitch will continue to rate the Notes as part of ABB's ratings and analytical
coverage, but will cease to provide ratings or analytical coverage for TNB.	
	
The rating actions as are follows:	
	
ABB's Long-term IDR affirmed at 'BBB+'; Short-term IDR affirmed at 'F2'; Outlook
Stable;	
	
TNB's senior unsecured notes affirmed at 'BBB+', as part of ABB;	
	
TNB's IDR withdrawn;	
	
ABB International Finance Ltd and ABB Treasury Center (USA), Inc's senior
unsecured ratings affirmed at 'BBB+'	
	
Commercial paper programmes issued by ABB Financial Services AB, ABB Capital
B.V. and ABB TC affirmed at 'BBB+'.	
	
Additional information is available at www.fitchratings.com.	
	
The ratings above were unsolicited and have been provided by Fitch as a service
to investors.	
	
Applicable criteria, 'Corporate Ratings Methodology', dated 12 August 2011, is
available at www.fitchratings.com.	
	
Applicable Criteria and Related Research:	
Corporate Rating Methodology

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