S&P affirms Goodyear notes

Standard & Poor's said it affirmed the B+ issue-level rating and recovery rating of 5 on Goodyear Tire & Rubber Co.'s $100 million issue of 8¼% senior unsecured notes due Aug. 15, 2020.

These notes are an add-on to the company's recently issued $900 million 8¼% senior unsecured notes due Aug. 15, 2020. The proceeds of this offering, together with cash and cash equivalents, will be used to repay the company's outstanding balance of $260 million 9% senior notes due July 1, 2015 at 104.5% of par.

The rating on Goodyear Tire reflects the company's high leverage and the substantial competition in both the replacement and original equipment tire markets, the agency said.

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