S&P downgrades Owens-Illinois

Standard & Poor's said it lowered its corporate credit rating on Owens-Illinois Inc. to BB- from BB, its senior secured debt to B from B+ and its preferred stock to B- from B. At the same time, the ratings of Owens-Brockway Glass Container Inc. were lowered, including the senior secured debt to BB- from BB and the senior unsecured debt to B from B+.

The outlook is negative.

S&P said the downgrades reflect the company's announcement of additional asbestos reserve related charges and a goodwill impairment; its sub par financial profile relative to ratings expectations; and ongoing business challenges that have delayed the expected progress in reducing Owens-Illinois' sizable debt burden.

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