Fitch Upgrades Thomas & Betts IDR to 'BBB+' on Completion of Acquisition by ABB

Fitch Ratings has upgraded Thomas & Betts Corporation's (TNB) Issuer Default Rating (IDR) and long-term ratings to 'BBB+' from 'BBB' and removed the ratings from Rating Watch Positive. The ratings for TNB's senior unsecured bank credit facilities have been withdrawn. The Rating Outlook is Stable.

TNB announced earlier this week the completion of its acquisition by ABB Ltd (ABB). The rating actions reflect Fitch's IDR of 'BBB+', Stable Outlook, for ABB which was affirmed in January 2012 when ABB announced its agreement to acquire TNB for approximately $3.9 billion. The upgrade of TNB's ratings to match those of ABB reflects Fitch's view that a strong linkage exists between ABB and TNB. The linkage is demonstrated by the material purchase price for TNB and ABB's rationale for the acquisition. The acquisition complements and broadens ABB's product portfolio, expands its presence in North America, and offers cost synergies.

Concurrent with completion of the acquisition, $325 million outstanding under TNB's bank credit facility was repaid. TNB's $250 million 5.625% senior unsecured notes due in 2021 remain outstanding. ABB has not indicated if it will assume or guarantee TNB's debt. The recent 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 has taken the following rating actions:

--IDR upgraded to 'BBB+' from 'BBB';

--Senior Unsecured Notes upgraded to 'BBB+' from 'BBB';

--Senior Unsecured Bank Facilities upgraded to 'BBB+' from 'BBB' and withdrawn.

Additional information is available at 'www.fitchratings.com'. The ratings above were solicited by, or on behalf of, the issuer, and therefore, Fitch has been compensated for the provision of the ratings.

Applicable Criteria and Related Research:

--Corporate Rating Methodology, Aug. 12, 2011;

--Parent and Subsidiary Rating Linkage, Aug. 12, 2011.

Applicable Criteria and Related Research:

Corporate Rating Methodology

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=647229

Parent and Subsidiary Rating Linkage

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=647210

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