Standard&Poor's Ratings Services said that the announcement that Goodyear Tire&Rubber Co. (BB-/Negative/--) will make adjustments to shareholders' equity in 2002 will not affect its ratings or outlook on Goodyear, because the actions will not directly affect cash flow and are not expected to impede the ongoing negotiations to establish a new credit facility. Of the adjustments made, a $1.1 billion charge will establish a valuation allowance against the company's net deferred tax assets, since the likelihood that future profits will allow for use of these deferrals has diminished. A $1.3 billion adjustment reflects an increase in the company's unfunded pension benefit obligations, due to continued lackluster performance of the company investments. Although the actions do not
