S&P rates Goodyear unit's loan B+

Standard & Poor's said it assigned its B+ rating and 2 recovery rating to Goodyear Dunlop Tires Europe BV's €505 million senior secured credit facility. The facility is guaranteed by parent Goodyear Tire & Rubber Co.

At the same time, the B+ corporate credit rating on Goodyear Tire & Rubber was affirmed. The outlook is stable.

The new five-year credit facility replaces Goodyear's existing $650 million European revolving credit facility and term loan, which were due to expire in April.

S&P said the ratings on Goodyear reflect the company's stressed financial profile, characterized by low earnings, driven by North American results, weak cash flow protection, onerous debt service obligations and heavy underfunded employee benefit liabilities.

Goodyear's credit statistics remain weak, with total lease-adjusted debt to EBITDA about 4.5x.

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