The ratings on Akron, Ohio-based Goodyear Tire&Rubber Co. reflect its aggressive financial risk profile, characterized by low, but improving, earnings in North America; a leveraged capital structure; and significant, albeit declining, 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, its good geographic diversity, its strong distribution, and its well-recognized brand name. Goodyear's financial performance strengthened during the past two years-–excluding the late 2006 strike--as a result of new product introductions, price increases, improved product mix, and cost reductions. But its North American operations, accounting for $139 million of operating profit and about 45% of total sales in 2007, continue to show
