S&P: Goodyear Tire loan BB

Standard & Poor's said it assigned a BB rating to the Goodyear Tire & Rubber Co.'s $1.2 billion senior secured second-lien term loan.

The agency also said it assigned a recovery rating of 2 to the term loan, indicating 70% to 90% expected recovery in a default.

The company is refinancing its domestic credit facilities, the agency said.

The commitment under its senior secured second-lien term loan will remain at $1.2 billion and will be extended to 2019.

Its senior secured, first-lien asset-based revolving credit facility will be increased from $1.5 billion to $2 billion and its maturity will be extended to 2017.

The proceeds will be used to repay the existing term loan and to fund working capital requirements and general corporate purposes of Goodyear Tire and its subsidiaries.

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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