Moody's rates Goodyear notes B3

Moody's Investors Service said it assigned a B3 rating to the new $400 million 10-year senior unsecured notes to be issued by Goodyear Tire & Rubber Co.

Proceeds from the notes will initially be used to repay outstandings under the company's revolving credit facility and restore cash balances following the repayment earlier this month of €400 million unsecured notes, Moody's said.

The agency said the rating reflects Moody's expectations that the company's financial condition has stabilized with recent results, particularly improved margins, confirming positive trends in replacement tire demand in North America; good liquidity to cover its operating needs including pension contributions; and competitive position remains solid.

The B3 rating to the new notes is level with the current unsecured rating of Goodyear and is two notches below the corporate family rating (previously called senior implied) of B1 and the liquidity rating of SGL-2 has been affirmed, Moody's noted.

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