Moody's ups Owens-Illinois, unit, rates issuance B2

Moody's Investors Service said it assigned a B2 rating to the proposed senior unsecured issuance of $650 million at Owens-Brockway Glass Container Inc. and concurrently raised the ratings of existing notes and convertible preferred stock at the parent company Owens-Illinois Inc. while affirming the enterprise's B2 senior implied rating. The outlook is stable.

Moody's also upgraded Owens-Brockway's $2.1 billion senior secured notes due 2009 to 2012 to B1 from B2, $441 million 8¼% senior unsecured notes due 2013 to B2 from B3, Owens-Illinois's $1.4 billion senior unsecured notes due 2005 to 2018 to B3 from Caa1 and $452.5 million convertible preferred stock to Caa1 from Caa2.

Moody's said the ratings actions positively reflect the cumulative improvements in consolidated free cash flow across geographies, notably in North American glass, as well as acknowledge the reduction in financial leverage.

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