Fitch Ratings downgraded Goodyear Tire & Rubber Co.’s long-term issuer default rating to ‘B+’ from ‘BB-’, citing persistent challenges in the tire market. Falling global tire volumes are outweighing the benefits of the company’s cost-cutting measures.
Global demand for Goodyear tires fell 4.7% in 2025. It declined a further 7.8% in the first half of 2026, increasing unabsorbed fixed costs and adding pressure to profitability. Goodyear’s Goodyear Forward restructuring plan has delivered substantial savings, but weak market conditions have muted the benefits.
Fitch expects Goodyear’s leverage to rise. Its debt-to-EBITDA ratio is expected to exceed 5.5x by the end of 2026. The ratio was 4.1x at year-end 2025.
Fitch assigned the rating a Stable outlook, reflecting its view that Goodyear’s restructuring efforts will eventually strengthen its financial metrics.