S&P rates Goodyear notes B-

Standard & Poor's said it assigned its B- rating to Goodyear Tire & Rubber Co.'s proposed $400 million senior notes due 2015. At the same time, the B+ corporate credit rating on the company was affirmed.

The outlook is stable.

Proceeds from the notes will be used partly to repay borrowings under the company's U.S. secured credit facility and to replenish cash used to repay other debt.

S&P said the ratings on Goodyear reflect the company's stressed financial profile, characterized by low earnings in North America, a highly leveraged capital structure 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, its good geographic diversity, its strong distribution, and a well-recognized brand name, the agency said.

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