S&P rates Goodyear loans BB, B+

Standard & Poor's said it assigned its BB rating and 1 recovery rating to Goodyear Tire & Rubber Co.'s $1.5 billion first-lien asset-backed revolving credit facility and its B+ rating and 2 recovery rating to the company's $1.2 billion second-lien term loan. At the same time, the B+ corporate credit rating on the company was affirmed.

The outlook is stable.

The new credit facilities will replace Goodyear's existing $1.95 billion asset-backed loan facility, which was due to expire in March 2006, and its $680 million revolver set to expire in April 2005.

S&P said the ratings on Goodyear reflect the company's stressed financial profile, characterized by low earnings, weak cash flow protection, onerous debt service obligations, and heavy underfunded employee benefit liabilities. These factors more than offset the company's business strengths, including its position as one of the three largest global tire manufacturers, with good geographic diversity, strong distribution, and a well-recognized brand name.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.