...Recent Upgrade: In March 2016, Fitch Ratings upgraded The Goodyear Tire & Rubber Company's (GT) Issuer Default Rating (IDR) to `BB' from `BB¡'. The upgrade reflects the strengthening of the company's credit profile beyond Fitch's previous expectations. This was the result of significantly improved profitability and strong FCF generation, which GT used to reduce debt by a larger amount than Fitch had previously contemplated. Declining Leverage: On an EBITDA basis, GT's gross leverage (debt/Fitch-calculated LTM EBITDA) at March 31, 2016 was 2.5x, down from 2.8x at March 31, 2015, as debt (including off-balance-sheet factored receivables) declined by USD155 million to USD6.4 billion. EBITDA rose to USD2.5 billion in the LTM ended March 31, 2016 from USD2.3 billion in the year-earlier period. Over the intermediate term, Fitch expects leverage to decline toward the 2x range as EBITDA rises and the company reduces debt to strengthen its balance sheet. Stronger FCF: FCF has improved markedly over...
