S&P lifts Owens-Brockway

Standard & Poor's said it raised the rating on Owens-Brockway Glass Container Inc.'s 3% senior notes due 2015 and 7 3/8% senior notes due 2016 to BB+ from BB.

The agency also said it revised the recovery rating on this debt to 4 from 5.

The 4 recovery rating indicates 30% to 50% expected default recovery.

Owens-Brockway Glass Container Inc. is a subsidiary of Owens-Illinois Inc.

The upgrade reflects higher recovery prospects to the Owens-Brockway notes as a result of higher senior secured debt repayment and lower unsecured claims that are pari passu with the Brockway notes, particularly with respect to U.S. unfunded pension and post-retirement obligations, S&P said.

The company's BB+ corporate credit rating and stable outlook are unchanged.

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

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.