The ratings on The Goodyear Tire&Rubber Co. reflect its aggressive financial risk profile characterized by low but improving earnings in North America and a leveraged capital structure. Akron, Ohio-based Goodyear has a weak business profile, which reflects tough global tire industry conditions and the company's high-cost structure. 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. The global tire industry is characterized by excess production capacity, leading to intense competition from diversified global players and more focused regional competitors. Fixed-capital and R&D requirements are high, and raw material prices are volatile. Management continues to strengthen the
