The ratings reflect Goodyear Tire&Rubber Co.'s leading market position, offset by its participation in a highly competitive industry and its aggressively leveraged capital structure. Goodyear is the world's largest tire manufacturer, supplying goods to both the replacement and original equipment (OE) segments of the industry. The company also produces rubber-related industrial and automotive components and chemicals. Goodyear has reported very disappointing financial results in the past three years for a number of reasons, including competitive pricing conditions; product shortages; mix shifts; and depressed demand in key markets. Goodyear's inability to effectively manage inventory levels during that time contributed to the demand/supply problems, adverse product mix shifts, and the resulting profit pressures. The company has become especially vulnerable to
