Fitch upgrades Goodyear, notes

Fitch Ratings said it upgraded the issuer default ratings of Goodyear Tire & Rubber Co. and its Goodyear Dunlop Tires Europe BV subsidiary to BB- from B+.

In addition, the agency upgraded Goodyear’s senior unsecured notes rating to BB-/RR4 from B/RR5.

Fitch affirmed the ratings on Goodyear’s secured revolving credit facility and second-lien term loan, as well as Goodyear Dunlop’s secured revolving credit facility at BB+/RR1. It also affirmed Goodyear Dunlop’s senior unsecured notes rating at BB/RR2.

Goodyear’s ratings apply to a $2 billion secured revolving credit facility, a $1.2 billion second-lien secured term loan and $3 billion in senior unsecured notes. Goodyear Dunlop’s ratings apply to a €400 million secured revolving credit facility and €250 million of senior unsecured notes.

The outlooks are stable.

Fitch said the upgrade of Goodyear’s issuer default rating reflects the improvement in the tire manufacturer's credit profile resulting from its significantly improved profitability, especially in North America, and the substantial decline in its pension obligations after fully funding its North American plans.

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