Fitch rates Goodyear Dunlop notes BB/RR2

Fitch Ratings said it assigned a rating of BB/RR2 to Goodyear Dunlop Tires Europe BV's proposed issuance of €250 million in senior unsecured notes due 2023 in a private placement.

Goodyear Dunlop is a wholly owned subsidiary of Goodyear Tire & Rubber Co. The issuer default ratings are BB- and the outlooks are stable.

The proposed notes will be guaranteed on a senior unsecured basis by Goodyear Tire and its U.S. and Canadian subsidiaries that also guarantee Goodyear Tire’s secured credit facilities and senior unsecured notes.

Proceeds from the proposed notes will be used to redeem in full Goodyear Dunlop’s existing €250 million of 6¾% senior unsecured notes due 2019, which became callable on April 15, 2015. By refinancing the 6¾% notes, Goodyear Dunlop will likely be able to take advantage of favorable European credit market conditions to lower its cost of debt, while shifting the maturity four years further into the future.

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