Moody's rates Owens-Illinois loans Baa3

Moody's Investors Service said it assigned Baa3 (LGD 1) ratings to the proposed new term loan and revolving credit facilities due June 2023 of Owens-Illinois Inc. and its subsidiaries.

The company's Ba3 corporate family, Ba3-PD probability of default and speculative-grade liquidity rating are unchanged.

The outlook is stable.

The proceeds of the debt will be used to pay off the existing term loan A, revolving credit facilities and to pay fees and expenses associated with the transaction, Moody's said.

The transaction does not change the credit profile as it is leverage neutral, the agency added.

The ratings reflect the company's leading position in the glass packaging industry, wide geographic footprint and continued focus on profitability over volume, Moody's said.

The ratings are constrained by the high concentration of sales, high percentage of premium products and the asbestos liabilities, the agency said.

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