S&P cuts Goodyear outlook to negative

Standard & Poor's said it has revised its outlook on the Goodyear Tire & Rubber Co. to negative from stable and affirmed its BB- corporate credit rating.

At the same time, the agency said it lowered its issue-level ratings on the company's unsecured debt to reflect revised post-default recovery expectations.

"The outlook revision reflects its view that tire demand will continue to decline as economic conditions deteriorate worldwide," said S&P credit analyst Lawrence Orlowski.

In the fourth quarter, Goodyear's sales fell about 20% from those of a year earlier, caused primarily by decreased auto production volumes, the agency added.

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