The ratings of Akron, Ohio-based Goodyear reflect the company's exposure to a highly competitive industry, an aggressively leveraged capital structure, high fixed costs, weak cash-flow protection, and looming cash needs in 2004 and 2005. These factors are partly mitigated by the company's position as one of the world's largest tire manufacturers, supplying both the replacement and original equipment segments of the industry. Goodyear has reported very disappointing financial results for the past four years because of a number of factors affecting its tire businesses, including competitive pricing conditions; product shortages; product mix shifts; market share losses; and depressed demand in key markets. Goodyear became especially vulnerable to profit pressures as a result of the Sumitomo Rubber Industries Ltd. alliance transacted
