Fitch rates Goodyear Tire notes B

Fitch Ratings said it assigned a rating of B with a recovery rating of RR5 to the new senior unsecured notes issued by the Goodyear Tire & Rubber Co. The 8¼% notes have a face amount of $900 million and mature on Aug. 15, 2020. The issuer default rating is B+.

The outlook is stable.

The proceeds will be used to redeem the company's remaining $388 million of outstanding 7.857% notes due in August 2011 and $325 million of outstanding 8 5/8% notes due December 2011, with remaining proceeds used for general corporate purposes.

The new notes are guaranteed by each of the company's U.S. and Canadian subsidiaries that also guarantee the company's senior secured credit facilities and senior unsecured notes.

The ratings reflect the company's strong competitive position in the global original equipment and aftermarket tire segments and stabilization in the company's end markets, Fitch said, set against a high debt load, weak free cash flow and substantial underfunded pension obligations.

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