Moody's cuts Goodyear

Moody's Investors Service said it has lowered the speculative-grade liquidity rating of Goodyear Tire & Rubber Co.'s to SGL-3 from SGL-2.

In a related action, the corporate family rating was affirmed at Ba3, the agency said.

The outlook remains negative.

The lowering of the speculative-grade liquidity rating of SGL-3 reflects Moody's expectation of Goodyear's ability to generate free cash flow over the next 12 months to be more challenged by general economic conditions, and lower passenger miles driven, the agency said.

While the company's current liquidity is expected to be sufficient to meet the $498 million of debt maturities due in Dec. 2009, the company will likely have a weaker liquidity profile subsequent to this payment, Moody's added.

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