The ratings on Akron, Ohio-based The Goodyear Tire&Rubber Co. reflect Standard&Poor's Ratings Services' opinion of its "aggressive" financial risk profile, which is characterized by substantial leverage and weak but growing free cash flow. We characterize the company's business risk profile as "fair," reflecting its position as one of the three largest tire manufacturers in the world, good geographic diversity, strong distribution channels, and well-recognized brand name. The ratings on the company also reflect our expectation that the company's cash flow and profitability will continue to show gradual improvement in 2013. Despite falling volumes in every geographic market, the company has been able to achieve solid segment operating margins of over 6% because of significant cost savings
