Moody’s Investors Service has downgraded $3.7 billion in Goodyear debt, saying it expects the Akron tire maker’s efforts to improve its finances will be effective but not enough to meet certain financial measurements, including better debt and earnings ratios.

Moody’s said its rating outlook for Goodyear is stable.

Moody’s downgraded Goodyear’s Corporate Family and Probability of Default ratings to Ba3 from Ba2.

Moody’s said it believes Goodyear’s pricing actions, factory modernizations in Germany and other cost savings programs will help mitigate rising raw material costs.

“Yet there are other industry pressures including the global automotive original equipment manufacturer sales, and industry expectations of flattish replacement tire volumes in the U.S.” Moody’s said in a release. “Additional actions will be [needed] to restore profits to levels experienced in 2016.”

Goodyear continues to have a strong, diverse globally competitive position,longstanding customer relations, and outpaces competitors in higher margin tires, Moody’s said.

“Management also has prudently discontinued share repurchases to preserve liquidity, as the company operates through challenging industry conditions,” Moody’s said.