The ratings on Akron, Ohio-based The Goodyear Tire&Rubber Co. reflect Standard&Poor's Ratings Services' expectation that the company's credit measures will continue to show steady, but gradual, improvement into 2012. In its latest quarter, Goodyear made progress toward its goal of segment operating income of 5% in North America. Consequently, we expect leverage to fall to around 4x by the end of 2012. Nevertheless, we see cash flow use tracking outside our expectations in 2011. We now believe Goodyear will use at least $350 million in free cash flow in 2011, compared with our previous expectation of $200 million. Still, we believe prospects for cash flow generation are improving, supported by Goodyear's better North American profitability and
