Fitch: Goodyear to positive

Fitch Ratings said it has affirmed the B+ issuer default rating and various issue ratings of the Goodyear Tire & Rubber Co. and its subsidiary Goodyear Dunlop Tires Europe BV.

Goodyear Tire's ratings apply to a $2 billion secured revolving credit facility, a $1.2 billion second-lien secured term loan and $3 billion of senior unsecured notes, while Goodyear Dunlop's ratings apply to a €400 million secured revolving credit facility and €250 million of senior unsecured notes.

The outlooks for both have been revised to positive from stable.

According to Fitch, the company's ratings reflect the company's strong market position as the third-largest global manufacturer of replacement and original equipment tires.

Although Goodyear's global unit tire sales have declined annually over the past two years, the company's focus on producing higher-margin high value added tires and its cost reduction initiatives have helped to grow margins and operating income as revenue has fallen.

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