S&P Global Ratings downgraded Goodyear Tire & Rubber Co.’s GT issuer credit rating by one notch to B+ on Tuesday after the company announced a two-year strategic overhaul aimed at bolstering profitability. “While we view the strategic initiatives as a positive step forward for Goodyear as it tries to increase margins closer to peers and reduce leverage, the cost of the restructuring is significant and will take an extended period of time, during which we expect Goodyear’s margins will be lower and free operating cash flow (FOCF) will remain negative, leading to overall weaker credit metrics than previously expected,”…
Master your money.
Subscribe to MarketWatch.
Get this article and all of MarketWatch.
Access from any device. Anywhere. Anytime.
Already a subscriber?
Log In
