AKRON (March 21, 2003) — Two investment agencies offered ratings for the $3.3 billion in credit facilities over which Goodyear is in discussions with its lenders.
Moody's Investors Service also downgraded the Akron-based tire maker's senior unsecured debt rating to B1 from Ba2. While that action gives the tire maker's lenders the right to terminate Goodyear's credit facilities, Goodyear said it does not expect lenders to exercise that right since they remain in discussions.
Goodyear also said it does not expect Moody's rating action to affect the availability of about $349 million in various European facilities, except for $105 million in its separate German program.
Moody's assigned a (P)Ba2 long-term debt rating to Goodyear's proposed senior secured credit facilities. S&P assigned ratings of BB+ and BB- for those facilities, though it affirmed the company's BB- corporate credit rating. Moody's said Goodyear's outlook is stable, while S&P said it is negative.
When the discussions with lenders are complete, Goodyear said it expects to have adequate liquidity to meet its financial obligations.