The ratings reflect the Goodyear Tire&Rubber Co.'s solid market position, offset by exposure to a highly competitive and cyclical industry, an aggressively leveraged capital structure, weak cash flow protection, and looming cash needs in 2004 and 2005. Goodyear is the world's largest tire manufacturer, supplying both the replacement and original equipment segments of the industry. The company had total debt of about $5 billion at Sept. 30, 2002. Goodyear has reported very disappointing financial results for the past four years owing to a number of factors including competitive pricing conditions; product shortages; product mix shifts; and depressed demand in key markets. Recent profit pressures have been exacerbated by the company's ineffective management of inventory in the face of
