S&P: Goodyear on negative watch

Standard & Poor's said that its BB- corporate credit and other ratings on Goodyear Tire & Rubber Co. remain on CreditWatch with negative implications where they were placed on Dec. 11, 2003.

The CreditWatch placement followed Goodyear's announcement that an internal investigation had identified possible improper accounting issues in its overseas operations. The CreditWatch also reflected concerns about the firm's poorly performing North American tire operations.

S&P said the internal accounting investigation has now been completed and will result in adjustments to previously reported financial statements, but S&P has concluded that the adjustments will have no impact on the company's ratings.

Nevertheless, the continuing CreditWatch placement reflects S&P's intention to review Goodyear's operating prospects, and ratings could still be lowered if it appears that Goodyear will not achieve meaningful improvement in its North American tire operations during the next few years.

Goodyear Tire & Rubber Co.'s senior secured debt is rated BB+ and senior unsecured debt is rated B.

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