S&P upgrades O-I Glass

S&P said it raised O-I Glass Inc.’s issuer rating to BB- from B+ and O-I European Group BV's unsecured debt to BB- from B+, and Owens-Brockway Glass Container Inc.'s unsecured debt to B+ from B in conjunction with the issuer credit rating. The recovery ratings remain unchanged at 3 and 5, respectively.

“O-I Glass has outperformed our expectation in the first half of the year, and we expect adjusted debt to EBITDA will remain below 5x by the end of 2022. O-I has shown a degree of operational consistency since the initial impacts from the Covid-19 pandemic. We expect volumes will be up about 1% this year even as the industry continues to experience a volatile operating environment, including inflationary pressures across raw materials, labor, energy, freight, and low inventory levels because of supply chain issues,” the agency said in a press release.

S&P said it estimates operating cash flows in 2022 will exceed $750 million.

The outlook is stable.

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