Fitch rates Goodyear notes CCC+

Fitch Ratings said it assigned CCC+ ratings with recovery ratings of RR6 to The Goodyear Tire & Rubber Co.'s new $500 million floating-rate notes due 2009 and $500 million 8 5/8% notes due 2011.

All ratings remain on Rating Watch negative, including the company's B issuer default rating, BB/RR1 $1.5 billion first-lien credit facility, BB/RR1 $1.2 billion second-lien term loan, B/RR4 $300 million third-lien term loan, B/RR4 $650 million third-lien senior secured notes, CCC+/RR6 senior unsecured debt and Goodyear Dunlop Tires Europe BV's €505 million secured credit facilities.

Proceeds from the new notes will be used to refinance $515 million of debt scheduled to mature by March and for general corporate purposes, including addressing the ongoing strike by the United Steelworkers union.

The agency placed Goodyear's ratings on Rating Watch negative on Oct. 18 following the company's $975 million drawdown of its $1.5 billion revolver, effectively using the remaining capacity under the revolver.

Fitch said the net addition of nearly $500 million of debt, excluding debt to be refinanced, further supports Goodyear's liquidity during the strike that began Oct. 5 and the Rating Watch negative reflects business risks posed by the strike and by concerns about the company's evolving financial position and liquidity as the strike continues.

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