S&P lifts Goodyear rating |
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Thu, 31 May 2007 21:24
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NEW YORK (AP) - Standard & Poor's Ratings Services said Thursday it raised the corporate credit rating it holds for Goodyear Tire & Rubber Co. to 'BB-' from 'B+.'The ratings service also took the company's ratings off CreditWatch, where they have been since May 10 with positive implications.S&P said the upgrade is due to Goodyear completing its equity offering with net proceeds of about $834 million. The company will use the proceeds to pay back about $175 million of its 8.625 percent notes due in 2011 and about $140 million of its 9 percent notes due in 2015.The ratings service said the company gains significant benefits from lowering its debt and similar responsibilities through an equity sale, pending asset sales and a new contract with the United Steelworkers union.Those changes plus ongoing increased performance in its North American tire operations, could lead the company to another upgrade within the next two years, S&P said.Goodyear shares hit a new 52-week high of $36.09 in Thursday trading. They closed at $35.47, up 31 cents.Copyright 2007 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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Moody's upgrades Goodyear rating 