Moody's ups Owens Illinois

Moody's Investors Service said it upgraded Owens Illinois, Inc.'s corporate family and probability-of-default ratings to Ba3, the $750 million senior unsecured notes and debentures due 2008 to 2018 to B2 (LGD6, 90%) from Caa1 (LGD6, 92%) and speculative grade liquidity rating to SGL-2 from SGL-3.

The agency upgraded Owens-Brockway Glass Container, Inc.'s $900 million senior secured first-lien revolving credit facility due June 15, 2012 and $200 million senior secured first-lien term loan B due June 12, 2013 to Baa3 (LGD2 12%) from Ba2 (LGD2, 21%) and €225 million senior unsecured notes due Dec. 1, 2014 and $850 million senior unsecured notes due 2013 to 2014 to Ba3 (LGD4, 54%) from B3 (LGD4, 68%).

The outlook is positive.

Moody's said the upgrade of the corporate family rating to Ba3 reflects the company's leading position in the industry and continued successful execution of its strategic turnaround plan.

Ratings are constrained by the inherent uncertainty surrounding the asbestos liabilities, mature state of the industry and customer concentration, the agency added.

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