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