The Goodyear Tire&Rubber Co. Outlook Revised To Negative Due To Commodity Cost Pressures

The Goodyear Tire&Rubber Co. (Goodyear) has not yet raised prices sufficiently, a challenge facing the industry, to recover past increases in raw material costs, thereby putting pressure on the company's sales and profitability. Other factors, such as declining original equipment (OE) production, are adding to these pressures. Consequently, we revised our outlook to negative from stable. We affirmed our 'BB' issuer credit rating. In addition, the 'BBB-' issue-level ratings on its second-lien secured debt and 'BB' rating on its senior unsecured notes are affirmed. The negative outlook reflects our view that there is at least a one-third chance that the company will not generate enough EBITDA and free operating cash flow to stay in line with our expectations

...May 1, 2019 - The Goodyear Tire & Rubber Co. (Goodyear) has not yet raised prices sufficiently, a challenge facing the industry, to recover past increases in raw material costs, thereby putting pressure on the company's sales and profitability. Other factors, such as declining original equipment (OE) production, are adding to these pressures. - Consequently, we revised our outlook to negative from stable. We affirmed our '##' issuer credit rating. In addition, the '###-' issue-level ratings on its second-lien secured debt and '##' rating on its senior unsecured notes are affirmed. - The negative outlook reflects our view that there is at least a one-third chance that the company will not generate enough EBITDA and free operating cash flow to stay in line with our expectations for the current rating. NEW YORK (S&P Global Ratings) May 1, 2019--S&P Global Ratings today took the above listed rating actions. Goodyear has not yet raised prices sufficiently to recover increases in raw material...

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