Moody's lifts Goodyear

Moody's Investors Service said it upgraded Goodyear Tire & Rubber Co.'s corporate family rating to Ba3 from B1 and maintained a positive outlook.

Moody's said it also affirmed Goodyear's liquidity rating of SGL-2, adding that the actions follow an announcement by Goodyear of plans to raise $750 million of new equity capital, which marks important further progress in the company's plans to strengthen its balance sheet.

Goodyear has been pursuing strategies to better position the company for long term competitiveness in the global tire business, the agency said, noting that capacity rationalization initiatives and a new labor contract reached with the United Steel Workers should provide scope for improved operating results, particularly in the core North American Tire segment.

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