Fitch cuts Goodyear

Fitch Ratings said it downgraded the ratings of the Goodyear Tire & Rubber Co. and its Goodyear Europe BV subsidiary to BB- from BB. Fitch also downgraded the company's senior unsecured notes rating to BB-/RR4 from BB/RR4. Fitch affirmed the ratings on the first-lien revolving credit facility, the second-lien term loan and the European unit's revolving credit facility at BB+/RR1 and the rating on its senior unsecured notes at BB/RR2.

The downgrade reflects Fitch's concerns that tire shipments in 2020 will be much lower than previously expected due to the global coronavirus crisis and that a recovery of volumes to pre-crisis levels may not occur until at least 2022 as the global economic recovery is likely to be relatively weak, the agency said.

The outlook is negative.

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