S&P lowers Goodyear view to negative

S&P said it revised Goodyear Tire & Rubber Co.'s outlook to negative from stable.

The agency also said it affirmed the BB issuer credit rating, along with the BBB- ratings on its second-lien secured debt and BB rating on its senior unsecured notes.

Goodyear Tire has not yet raised prices sufficiently, a challenge facing the industry, to recover past increases in raw material costs, thereby putting pressure on the company's sales and profitability, S&P said.

Other factors, such as declining original equipment production, are adding to these pressures, the agency said.

The negative outlook reflects a view that there is at least a one-third chance that the company will not generate enough EBITDA and free operating cash flow to stay in line with expectations, S&P said.

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