Moody's affirms Goodyear

Moody's Investors Service said it affirmed Goodyear Tire & Rubber Co.'s corporate family rating of B1.

The agency added that ratings on Goodyear's existing secured and unsecured obligations were also affirmed as was the company's speculative-grade liquidity rating of SGL-2.

The outlook has reverted to stable from negative, the agency said, noting that the actions follow the resolution of Goodyear's organized labor contract with the USW in North America and more detailed disclosure of the settlement's applicable terms and benefits.

Moody's said it would expect the company over time to achieve significant efficiencies from the new contract and other restructuring actions.

Affirmed ratings include the company's probability of default, B1, first-lien credit facility, Ba1, LGD 2, 10%, second-lien term loan, Ba3, LGD 3, 35%, third-lien secured term loan, B2, LGD 4, 63%,

11% senior secured notes, B2, LGD 4, 63%, floating-rate senior secured notes, B2, LGD 4, 63%, 9% senior notes, B2, LGD 4, 63%, 8 5/8 % senior unsecured notes due 2011, B2, LGD-4, 63%, floating-rate unsecured note due 2009, B2, LGD-4, 63%, 8½% senior notes, B3, LGD 6, 94%, 6 3/8% senior notes, B3, LGD 6, 94%, 7 6/7% senior notes, B3, LGD 6, 94%, 7% senior notes, B3, LGD 6, 94%, senior unsecured convertible notes, B3, LGD 6, 94% and speculative-grade liquidity rating, SGL-2.

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