S&P rates Owens-Illinois notes B

Standard & Poor's said it assigned its B senior unsecured debt rating to OI European Group BV's proposed offering of €300 million of notes due 2017. The agency also affirmed the BB- corporate credit rating of parent company Owens-Illinois Inc. and its subsidiaries.

The notes will be issued under Rule 144A without registration rights. Net proceeds will be used to temporarily repay borrowings under the secured credit agreement.

The ratings reflect the company's highly leveraged financial profile, subpar credit measures and meaningful concerns regarding its asbestos liability, the agency said. These factors are partially offset by a satisfactory business position and attractive profitability, S&P added.

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