Moody’s affirms Dealer Tire

Moody's Investors Service said it confirmed Dealer Tire, LLC's existing ratings, including its B1 corporate family rating and B1 senior secured credit facility ratings.

The agency also assigned a B1 rating to Dealer Tire's upsized revolving credit facility to expire in January 2021.

The outlook is stable. These actions conclude the review for downgrade initiated on April 17 following the announcement that Goodyear Tire & Rubber Co. (Ba2 stable) and a U.S. subsidiary of Bridgestone Corp. (A2 stable) are forming one of the largest tire distribution joint ventures in the United States.

“The confirmation reflects Moody's view that the recently announced wholesale distribution joint ventures by major tire manufacturers will have limited effect on Dealer Tire's volume as it benefits from the direct relationship with several original auto manufacturers (OEMs) by running their tire programs through the integrated technology platform,” the agency said in a news release.

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