Goodyear plans to cut debt in bid to achieve investment-grade rating

By Devika Patel

Knoxville, Tenn., June 14 – Goodyear Tire & Rubber Co. plans to reduce its debt and has money set aside for doing so.

The company has “very strong” free cash flow, management said, and is committed to attaining an investment-grade rating.

“We also have money allocated for debt repayment,” executive vice president and chief financial officer Laura Thompson said at the Citigroup 2017 Industrials Conference in Boston on Wednesday. “Because, getting to an investment-grade credit rating is critical for the company going forward.”

The company seems to have plenty of free cash flow to help it pay down the debt, Thompson said.

“We generate a tremendous amount of cash,” she said.

At the end of quarter on March 31, Goodyear reported net cash and cash equivalents of $1.05 billion, according to a 10-Q filing with the Securities and Exchange Commission.

Goodyear is an Akron, Ohio-based tire company.

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