S&P boosts Owens-Illinois loan

Standard & Poor's said it raised its ratings on the bank credit facilities of Owens-Illinois Inc. and its wholly owned subsidiary, Owens-Brockway Glass Container Inc., to BB+ from BB.

The agency said it has also revised the recovery rating on the debt to 1 from 2, indicating the expectation that lenders would experience very high recovery of principal in the event of a payment default.

"The improved ratings," said S&P credit analyst Liley Mehta, "reflect the company's reduction of senior secured debt with the proceeds from the recently completed sale of its plastics packaging business to Rexam plc."

At the same time, S&P said it removed the ratings on the company's senior secured credit facilities from CreditWatch with positive implications where they were placed on June 11, while it also affirmed the BB- corporate credit, B unsecured debt and B- preferred stock ratings.

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