S&P may cut Goodyear’s ratings deeper

Standard & Poor’s has said it may cut its rating on Goodyear Tire & Rubber Co. deeper into junk territory, following the company’s announcement on Wednesday of possible accounting problems in Europe. “The announcement raises potential accounting concerns in a Goodyear operation that has been seen as solidly profitable,” S&P credit analyst Martin King said in a release.

“Ratings could be lowered if the investigation results in material accounting adjustments, leading to substantial financial reporting delays, or has a negative impact on the company’s prospective liquidity and access to capital,” he said. S&P said it may cut Akron, Ohio-based Goodyear’s corporate credit rating of “BB-minus”, its third-highest junk rating..