S&P rates Owens-Brockway notes B

Standard & Poor's said it assigned its B rating to Owens-Brockway Glass Container Inc.'s (a wholly owned subsidiary of Owens-Illinois Inc.) proposed $650 million senior unsecured notes due 2014. At the same time, all ratings on Owens-Illinois Inc. and its related entities are affirmed.

S&P affirmed Owens-Illinois' BB- corporate credit rating, B senior secured debt rating and B- preferred stock rating and Owens-Brockway's senior secured credit facilities BB- and senior unsecured debt at B.

Proceeds of the proposed notes offering and some borrowings under the revolving credit facility will be used to refinance its subsidiary, BSN Glasspack SA's €160 million 9¼% senior subordinated notes due 2009 and €140 million 10¼% senior subordinated notes due 2009 and repurchase Owens-Illinois' $350 million 7.15% notes due 2005.

S&P said the ratings on Owens-Illinois and related entities reflect its aggressive financial profile, subpar credit measures and meaningful concerns regarding its asbestos liability.

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