Fitch rates Owens-Brockway notes BB+

Fitch Ratings said it assigned a BB+ rating to Owens-Brockway Glass Container Inc.'s $300 million 7 3/8% senior unsecured notes due 2016.

The outlook is stable.

The proceeds will be used for the repayment of Owens-Illinois, Inc.'s $250 million of 7½% debentures due May 2010 and for general corporate purposes.

The agency said Owens-Illinois' BB issuer default rating is supported by the company's good financial flexibility, leading market positions, strengthened credit profile, improved cost structure, global footprint, technology leadership and long-term customer relationships with large, stable customers.

Rating concerns include the limited visibility on the business outlook, reduced global demand impacting volume, a substantial portion of sales being derived from mature markets and to a lesser extent, the asbestos liabilities, Fitch said.

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