Cooper Tire & Rubber Company -- Moody's says Cooper Tire's termination of the merger agreement with Apollo Tyres is a positive credit development

New York, January 03, 2014 -- Moody's Investors Service said that the recent announcement by Cooper Tire & Rubber Company ("Cooper Tire") that it has terminated the merger agreement with Apollo Tyres is viewed as a credit positive development, but does not impact Cooper Tire's current B1 Corporate Family Rating and review for possible downgrade. We anticipate that the termination of the merger agreement will reduce the prospects for a significant increase in financial leverage and will resolve the work stoppage at the Cooper Chengshan Tire joint venture, which are considered positive developments. However, we also believe that weaker operating trends experienced in second quarter 2013 results are likely to further adversely affect the company's financial performance, and that in the absence of the merger with Apollo, Cooper's initiatives to enhance shareholder value will need to be reassessed, resulting in the ongoing review for possible downgrade. For further information, please see www.moodys.com.

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