Moody’s rates Goodyear second-lien loan Baa3

Moody's Investors Service said it affirmed the ratings of Goodyear Tire & Rubber Co., including its Ba2 corporate family rating and Ba2-PD probability of default rating.

In a related action, the agency affirmed the ratings on Goodyear's existing debt: second-lien term loan at Baa3, senior unsecured guaranteed notes at Ba3, senior unsecured unguaranteed notes at B1; and Goodyear Dunlop Tires Europe BV's senior unsecured guaranteed notes at Ba1.

Moody's also assigned a Baa3 to Goodyear's amended and extended second-lien term loan.

The speculative grade liquidity rating was affirmed at SGL-1.

The outlook is stable.

“The affirmation of Goodyear's Ba2 Corporate Family Ratings reflects the company's demonstrated ability to improve the price/mix of its product offerings in 2017 and ongoing ability to generate cost saving to help mitigate raw material cost headwinds during the year,” Moody’s said in a news release.

“While ill-timed pricing actions in 2017, which were not followed by competitors, negatively impacted Goodyear's volumes in the U.S., gradually increasing market prices of tires of competitors in U.S. since then are expected to support higher sales volumes over the near-term.”

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