Moody's rates Goodyear notes B1

Moody's Investors Service said it assigned a B1 rating (LGD4, 65%) to Goodyear Tire & Rubber Co.'s $500 million offering of unsecured notes due 2016.

Goodyear's corporate family and probability-of-default ratings were affirmed at Ba3, and the speculative grade liquidity rating was affirmed at SGL-3.

The agency also affirmed the $1.5 billion first-lien revolving credit facility due 2013 at Baa3 (LGD1, 8%), $1.2 billion second-lien term loan due 2014 at Ba1 (LGD2, 22%), 9% senior unsecured notes due 2015 at B1 (LGD4, 65%), floating-rate unsecured note due 2009 at B1 (LGD4, 65%), 8 5/8 % senior unsecured notes due 2011 at B1 (LGD4, 65%), 7 6/7% senior notes due 2011 at B2 (LGD6, 95%) and 7% senior notes due 2028 at B2 (LGD6, 95%).

The outlook remains negative.

The affirmation reflects the company's global scale, geographic diversification and significant market share, and adequate liquidity profile amid deteriorating operating conditions in the tire industry, according to the agency.

The B1 rating assigned to the new notes recognizes their junior position relative to the company's first- and second-lien credit facilities as well as the benefits of upstream guarantees from material North American subsidiaries, the agency noted.

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