S&P pulls Goodyear Tire from watch

S&P said it affirmed all its Goodyear Tire & Rubber Co. ratings and removed them from CreditWatch with negative implications. The agency placed the ratings on CreditWatch on May 13. The outlook is negative.

“We expect Goodyear to continue to benefit from a recovery in global tire demand. Despite the company’s steep drop in tire volumes in the second quarter due to the closure of many businesses to halt the spread of Covid-19, third-quarter sales declined only 9% versus the third-quarter 2019. As the quarter progressed, global tire volumes improved,” S&P said in a press release.

The negative outlook mirrors the view there is at least a one-third chance S&P will lower the ratings if Goodyear’s liquidity weakens significantly over the next 12 months due, for instance, to another round of plant shutdowns due to the pandemic, the agency said.

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