S&P rates Owens-Brockway notes BB

Standard & Poor's said it assigned a BB rating to Owens-Brockway Glass Container Inc.'s proposed offering of $300 million of senior unsecured notes due 2016 with a recovery rating of 4.

The corporate credit rating on Owens-Illinois (BB/positive) remains unchanged.

Proceeds will be used to repay or repurchase its $250 million 7½% senior debentures due May 15, 2010.

"The ratings on Owens-Illinois reflect its satisfactory business risk profile as the world's largest manufacturer of glass containers, its improving cost position, and financial policies that could support a one-notch upgrade during the next several quarters," S&P analyst Cynthia Werneth said in a statement.

"Offsetting these positives is the currently slack demand for certain of its products, which we believe is temporary but will likely result in somewhat weaker credit statistics in the near term."

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