Moody’s cuts Goodyear

Moody's Investors Service said it downgraded the ratings of Goodyear Tire & Rubber Co., including the corporate family and probability of default ratings to B1 and B1-PD, from Ba3 and Ba3-PD, respectively.

The agency also lowered Goodyear's senior secured second-lien term loan to Ba2 from Ba1, senior unsecured guaranteed notes to B2 from B1, senior unsecured unguaranteed notes to B3 from B2, and Goodyear Europe BV's senior unsecured guaranteed notes to Ba3 from Ba2.

The speculative grade liquidity rating remains SGL-3.

The ratings are under review for downgrade.

The agency said the auto sector has been one of the sectors most significantly affected by the shock of the pandemic, given its sensitivity to consumer demand and sentiment.

“More specifically, the weaknesses in the companies' credit profiles, including their exposure to final consumer demand for light vehicles have left them vulnerable to shifts in market sentiment in these unprecedented operating conditions and the companies remain vulnerable to the outbreak continuing to spread,” the agency said in a news release.

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