Moody’s rates OI European notes Ba3

Moody's Investors Service said it assigned a Ba3 rating to the proposed €600 million senior unsecured notes of OI European Group BV, a subsidiary of Owens-Illinois Inc.

The company's Ba3 corporate family rating, Ba3-PD probability of default rating and other instrument ratings remain unchanged.

The outlook is stable.

Proceeds from the new senior notes will be used to repay term loan B due August 2022 as well as to pay related fees and expenses.

Owens-Illinois’ Ba3 corporate family rating, Ba3-PD probability of default rating and other instrument ratings are unchanged as the transaction is largely leverage neutral and Moody's expects the company will continue to improve its operating results in the rating horizon.

Moody’s said the Ba3 corporate family rating reflects Owens-Illinois’ leading position in the industry, wide geographic footprint and continued focus on profitability over volume. The company has led the industry in establishing and maintaining a strong pricing discipline and improving operating efficiencies, which has had a measurable impact on its operating performance and the competitive equilibrium in the industry, the agency added.

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