S&P affirms Owens-Illinois

Standard & Poor's said it affirmed the BB+ corporate credit rating on Owens-Illinois Inc. and the BBB senior secured debt and 1 recovery ratings, BB+ senior unsecured debt and 3 recovery ratings on debt issued by OI European Group, and the BB- senior unsecured debt and 6 recovery ratings on debt issued by Owens-Illinois Inc.

The agency also lowered the ratings on senior unsecured debt issued by Owens-Brockway Glass Container Inc. to BB from BB+ and revised the recovery rating to 5 from 4.

S&P assigned a BB+ senior unsecured debt rating and a recovery rating of 3.

Proceeds will be used to repay borrowings under the company's revolving credit facility and for general corporate purposes.

Ratings reflect the company's satisfactory business risk profile and significant financial risk profile, the agency said.

"Key factors supporting the ratings include solid long-term business prospects, relatively stable earnings and cash flows, management's focus on ongoing productivity improvements and cost reduction, and prudent financial policies," S&P analyst Cynthia Werneth said in a statement.

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