Goodyear seeks loan funds - Moody's calls them junk

ERJ staff report (DS)

Akron, Ohio - Goodyear wants to raise $750 million through a 10-year unsecured notes. The company said it expects to use the funds raised to restructure existing debts.

Moody's, the credit-reference agency, assigned a B1 rating to the bonds, suggesting that it does not believe the paper is of investment grade.

In a related action, Moody's affirmed Goodyear's other ratings, including: the Corporate Family and Probability of Default ratings at Ba3; existing senior secured debt, guaranteed senior debt, and unguaranteed senior debt at Baa3, B1, and B2, respectively. The Speculative Grade Liquidity Rating was raised to SGL-2 from SGL-3. The rating outlook was changed to stable from negative.

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Press release from Goodyear (notes issuance)

Moody's rating from Moody's (Free registration with Moody's required)

Moody's rating from Associated press