Fitch rates Owens-Brockway notes BB+

Fitch Ratings said it affirmed Owens-Illinois Inc.'s issuer default rating at BB and senior unsecured notes at BB-, along with Owens-Brockway Glass Container Inc.'s issuer default rating at BB, senior secured credit facilities at BBB- and senior unsecured notes at BB+ and OI European Group, BV's senior secured credit facility at BBB- and senior unsecured notes to BB+.

Fitch also said it assigned a BB+ rating to Owens-Brockway Glass Container's offering of $500 million of exchangeable senior notes due 2015. The proceeds will be used to repurchase $55 million of common stock and repay debt.

The outlook is stable.

The ratings are supported by the company's good liquidity, leading global market positions, solid credit profile, improved cost structure and price discipline, technology leadership and long-term customer relationships with large, stable customers, Fitch said.

The agency said its aggressive strategy has significantly reduced fixed costs and resulted in improved asset utilization and profitability, the agency said.

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