S&P ups Goodyear

Standard & Poor's said it raised its ratings on Goodyear Tire & Rubber Co., including its corporate credit rating to BB- from B+.

In addition, the ratings were removed from CreditWatch where they were placed with positive implications on May 10, the agency said.

S&P noted that the upgrades reflect the company's completion of its equity offering with net proceeds of $834 million, stating that proceeds will be used to repay $175 million of its 8.625% notes due in 2011 and $140 million of its 9% notes due in 2015.

According to the agency, the ratings on Goodyear reflect its aggressive financial risk profile, characterized by low but improving earnings in North America, a leveraged capital structure and significant, albeit declining, underfunded employee benefit liabilities.

These factors more than offset the company's business strengths, including its position as one of the three largest global tire manufacturers, its good geographic diversity, its strong distribution and its well-recognized brand name, S&P said.

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