Moody’s shifts Goodyear view to negative

Moody’s Investors Service said it revised its outlook for Goodyear Tire & Rubber Co. and Goodyear Europe BV to negative from stable.

“The change in outlook to negative reflects Moody's growing concern that weak earnings and cash flow could persist well into 2024. Despite expected sequential improvement from the first half of this year, Q3 and Q4 2023 earnings will likely be weaker than the prior year leaving leverage above 6x through year-end 2023.

Free cash flow should improve from the sharply negative results seen in the last twelve months ended June 2023, yet Moody's still expects negative free cash flow for the full year,” the agency said in a press release.

Moody's said it also affirmed Goodyear’s B1 corporate family rating, B1-PD probability of default rating and the B2 and B3 ratings on the company's senior unsecured notes. The agency concurrently affirmed Goodyear Europe's backed senior unsecured notes rating at Ba3.

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