Moody's assigns Ba3 to O-I Glass

Moody's Investors Service said it assigned a Ba3 corporate family rating, a Ba3-PD probability of default rating, and SGL-1 speculative grade liquidity rating to O-I Glass, Inc.

Concurrently, the agency withdrew Owens-Illinois Group, Inc.'s B1 CFR, B1-PD PDR and SGL-1 rating. Moody's also raised the ratings of OI European Group BV to Ba3 from B1 and the ratings of Owens-Brockway Glass Container, Inc. to B2 from B3. The agency revised the outlook to stable from positive.

The upgrade reflects an expectation of the continued strengthening of O-I's credit profile following the ongoing repositioning of the company's portfolio, greater predictability of free cash flow generation, and a commitment by management to lower leverage, Moody’s said.

“For year-end 2022, we project total-debt-to EBITDA (inclusive of Moody's adjustment) to be around 4.4x and to be near 4x by year-end 2023,” the agency said in a press release.

The revised outlook reflects an expectation that O-I will boost revenue organically, improve profitability and deliver free cash flow that can be used to reduce debt, Moody’s 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.