S&P assigns Goodyear notes BB-

S&P said it assigned BB- issue-level rating and 3 recovery rating to Goodyear Europe BV's planned €300 million of senior unsecured notes due 2028. The 3 recovery rating indicates an expectation for meaningful (50%-70%; rounded estimate: 65%) recovery in default.

The company plans to use the proceeds to refinance its €250 million of senior unsecured notes due 2023, with the remainder for general corporate purposes.

“Because this is largely a refinancing transaction, it will not materially increase Goodyear's leverage or impair the recovery prospects for its unsecured noteholders. Therefore, we rate the new unsecured notes at the same level as our issue-level rating on the company's existing senior unsecured debt,” S&P said in a press release.

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