On Feb. 28, 2005, Standard&Poor's Ratings Services assigned its 'BB' rating and '1' recovery rating to Goodyear Tire&Rubber Co.'s $1.5 billion first-lien asset-backed revolving credit facility, indicating a high expectation of full recovery of principal in the event of default, and its 'B+' rating and '2' recovery rating to the company's $1.2 billion second-lien term loan, indicating the likelihood that lenders will realize substantial (80%-100%) recovery of principal in the event of default and that minimal loss is expected. At the same time, the 'B+' corporate credit rating on the company was affirmed. Akron, Ohio-based Goodyear has total debt of about $6.8 billion, and $6.0 billion of underfunded employee benefit liabilities. The ratings outlook is stable.
