The ratings on The Goodyear Tire&Rubber Co. reflect its aggressive financial risk profile, according to Standard&Poor's Ratings Services' criteria, which is characterized by weak earnings in North America and a highly leveraged capital structure. We characterize the company's business risk profile as weak, which reflects tough global tire industry conditions combined with our view of the company's high fixed-cost structure. These factors more than offset the company's business strengths, which we consider include its position as one of the three largest tire manufacturers in the world, good geographic diversity, strong distribution channels, and a well-recognized brand name. The tire industry is characterized by excess production capacity, leading to intense competition from large, diversified global players and
