Bloomberg Anywhere Remote Login Bloomberg Terminal Demo Request


Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.


Financial Products

Enterprise Products


Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000


Industry Products

Media Services

Follow Us

Bloomberg Customers

Markets & Finance

Merrill Downgrades Goodyear Tire to 'Sell'

Merrill Lynch downgraded Goodyear Tire & Rubber (GT) to sell.

Goodyear says it will eliminate its dividend to raise cash, and is talking with its banks and hopes to boost its financial flexibility by modifying some of its loan agreements. Analyst John Casesa estimates that during 2003 and 2004, Goodyear faced about $1.9 billion in cash calls for debt maturities, pension contributions, and put options.

Casesa says the company is dependent on its banks' willingness to continue to extend its credit and help it to refinance its obligations. At present, Goodyear does not have a wide margin of error before it butts up against its covenants, he adds.

Casesa says a breach could require the company to come up with cash earlier than expected, or make refinancing either more difficult or very expensive.

Goodyear's shares have fallen more than 45% percent since the beginning of the year.

blog comments powered by Disqus