Fitch upgrades Goodyear

Fitch Ratings said it upgraded Goodyear Tire & Rubber Co.'s issuer default rating to BB- from B+ and senior unsecured debt rating to B+ from B-/RR6.

The agency affirmed Goodyear Tire & Rubber Co.'s $1.5 billion first-lien credit facility at BB+ and $1.2 billion second-lien term loan at BB+ and Goodyear Dunlop Tires Europe BV's €505 million European secured credit facilities at BB+.

The outlook is stable.

Fitch said the upgrades reflect the company's debt reduction and cost cuts as well as its successful shift to selling more premium-priced products.

Ratings reflect an improving cost structure, a more focused marketing strategy, growing international sales and solid liquidity, the agency said.

Concerns include exposure to declining car sales in the United States and an uncertain economy, raw material costs, competitive pricing in certain international markets and cash requirements for capital expenditures and pension contributions, Fitch said.

The issuer's debt-to-EBITDA ratio fell to about 3 times as of Dec. 31.

© 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.