Fitch assigns Goodyear notes CCC+

Fitch Ratings said it assigned an indicative rating of CCC+ to Goodyear Tire & Rubber Co.'s planned $400 million 10-year issue of senior unsecured notes.

Proceeds will be used to repay $200 million outstanding under the company's first-lien revolving credit facility and to replace $190 million of cash balances that were used to pay $516 million of 6.375% euro notes due June 6, Fitch said.

The outlook is stable.

The rating reflects the substantial amount of senior secured debt relative to the planned notes. It also incorporates Fitch's concerns about Goodyear's high leverage, high-cost structure and weak profitability and cash flow, the agency noted.

Partly mitigating these concerns are the company's $1.7 billion of cash balances at March 31 and additional flexibility provided by new bank facilities executed in April 2005 that extended maturities out to 2010, the agency added.

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