Fitch rates Goodyear notes B

Fitch Ratings said it assigned a rating of B with a recovery rating of RR5 to the Goodyear Tire & Rubber Co.'s proposed $750 million in senior unsecured notes due 2021.

The company has an issuer default rating of B+.

The outlook is stable.

The proposed notes will be guaranteed by certain of Goodyear's U.S. and Canadian subsidiaries that also guarantee the company's secured credit agreement and existing senior unsecured notes, Fitch said.

The proceeds will be used for contributions to its frozen U.S. defined benefit pension plans and for general corporate purposes, the agency said.

The company's U.S. pension plans that are currently frozen were underfunded by about $1 billion as of Dec. 31, 2012, Fitch said.

The ratings reflect the company's strong competitive position as the third-largest global manufacturer of replacement and original equipment tires, the agency said.

Although unit volumes declined in three of the company's four global regions in 2012, positive pricing and mix partially offset the effect on revenue and margins, Fitch added.

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