S&P keeps Goodyear on watch

Standard & Poor's said its ratings on the Goodyear Tire & Rubber Co. remain on Creditwatch with negative implications, where they were placed Nov. 13, as a result of the company's exposure to General Motors Corp. (CCC+/negative), Ford Motor Co. (B-/watch negative) and Chrysler LLC (CCC+/negative).

The agency said that the automakers are increasingly beleaguered by a worsening economy, a shift in consumer preferences away from full-size SUVs and pickup trucks, and faster-than-expected cash burn as they attempt to adjust productive capacity with demand.

"Although Goodyear's global exposure to the Michigan-based original equipment manufacturers was less than 8% in 2007 and continues to fall, the agency said it believe the worsening conditions of these customers pose another level of difficulty and uncertainty in an already challenging environment worldwide," said S&P credit analyst Lawrence Orlowski.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.