News & Observer | newsobserver.com | Goodyear credit downgraded

Published: Oct 18, 2006 12:00 AM
Modified: Oct 18, 2006 02:52 AM

Goodyear credit downgraded

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CLEVELAND - Two top business credit agencies gave Goodyear Tire & Rubber a negative outlook, saying the strike by 12,000 workers at 16 plants in North America could hurt business.

No new negotiations were scheduled between Goodyear and the United Steelworkers union. The workers went on strike Oct. 5, including about 2,150 tire makers at a plant in Fayetteville.

Standard & Poor's Ratings Services, which gives Goodyear a "B+" credit rating, put the company on a negative watch list because the strike could disrupt business and hurt earnings. Moody's Investment Service also cited the strike in downgrading Goodyear's outlook from stable to negative, while keeping its credit rating at "B1."

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