Fitch cuts Goodyear Europe loan

Fitch Ratings said it downgraded Goodyear Europe BV’s second-lien term loan to BB-/RR4 from BB+/RR1 and the rating on Goodyear Europe's senior unsecured notes to BB-/RR4 from BB/RR2. The agency also affirmed Goodyear Europe's first-lien revolving credit facility at BB+ but revised the recovery rating to RR2 from RR1. Fitch removed the entities from under criteria observation.

Fitch said it took the action based on its revised corporate ratings criteria from April 9.

Concurrently, Fitch affirmed the long-term issuer default ratings of the Goodyear Tire & Rubber Co. and Goodyear Europe at BB-. The agency also affirmed the ratings on Goodyear's first-lien secured asset-based lending revolver at BB+/RR1 and its senior unsecured notes at BB-/RR4.

Fitch also revised the outlook for both companies to stable from negative. “The revision of Goodyear's Rating outlook to stable from negative reflects Fitch's view that global tire end-market conditions have stabilized and that a downgrade of the company's ratings over the intermediate term is unlikely,” the agency said in a press release.

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