S&P rates Goodyear loan BBB-

S&P said it assigned its BBB- issue-level and 1 recovery ratings to Goodyear Tire & Rubber Co.'s proposed $400 million second-lien term loan.

The 1 recovery rating indicates an expectation that lenders would receive very high recovery (90%-100%; rounded estimate: 95%) in the event of a payment default.

The company is refinancing one of its domestic credit facilities.

The commitment under its senior secured second-lien term loan will remain $400 million.

The proceeds under the amended and restated term loan will be used to repay the existing term loan to lenders who do not consent to the amendment.

S&P said the ratings on Goodyear reflect the company's leverage and cash flow, as well as its competitive position in both the replacement and original equipment tire markets.

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