S&P rates Goodyear notes B+

Standard & Poor's said it assigned a B+ rating on the Goodyear Tire & Rubber Co.'s proposed $700 million in senior unsecured notes due May 15, 2022.

The agency also said it assigned a recovery rating of 5 to the notes, indicating 10% to 30% expected recovery in a default.

The proceeds, together with cash and cash equivalents, will be used to redeem all of the company's $650 million 10½% senior notes due 2016 at a redemption price of 100% of the principal amount, plus a premium as well as accrued and unpaid interest as of the redemption date.

The ratings reflect the company's high leverage and the substantial competition in both the replacement and original equipment tire markets, S&P said.

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