The ratings on The Goodyear Tire&Rubber Co. reflect the company's stressed financial profile characterized by low earnings driven by North American results, a highly leveraged capital structure, and heavy underfunded employee benefit liabilities. These factors more than offset the company's business strengths, including its position as one of the three largest global tire manufacturers, good geographic diversity, strong distribution, and a well-recognized brand name. Goodyear has a below-average business profile, which reflects the challenges of the global tire industry and the company's poor operating performance in recent years. The industry is characterized by excess production capacity, high manufacturing costs, heavy fixed-capital and R&D requirements, intense competition from diversified global players and more-focused regional competitors, cyclical demand, and exposure
