Fitch downgrades ADT's IDR to BBB, outlook stable Fitch Ratings has downgraded the ratings of The ADT Corporation, including the company's Issuer Default Rating to 'BBB' from 'BBB+'. The Rating Outlook remains Stable. The downgrade reflects ADT's recently announced $2B share repurchase program that will be funded by debt and free cash flow. The company's board of directors announced today the authorization of a $2 billion share repurchase program over a 3-year period. The downgrade also reflects management's willingness to undertake a more aggressive financial strategy soon after becoming an independent company. These actions also provide some uncertainty regarding management's financial policies beyond the near term. Fitch will continually evaluate how management balances demands from its shareholders while maintaining its commitment to an investment grade profile.
On the Fly: Analyst Initiation Summary Today's noteworthy initiations include: ADT Corp. (ADT) initiated with an Outperform at Raymond James... American Campus (ACC) initiated with a Buy at Stifel... Encana (ECA) initiated with an Equal Weight at Morgan Stanley... Sage Therapeutics (SAGE) initiated with a Buy at SunTrust... TerraForm Power (TERP) initiated with a Buy at BofA/Merrill.