NEW YORK (Standard&Poor's) Jan. 12, 2005-- Standard&Poor's Ratings Services said today that Eastman Kodak Co.'s (BBB-/Watch Neg/A-3) planned purchase of the 50% of Kodak Polychrome Graphics LLC (KPG) that it does not already own does not currently affect its rating or CreditWatch listing. The purchase will modestly improve Kodak's profitability and aid progress toward positive operating income of its emerging graphics communications business, a key area targeted for growth. However, the transaction will also reverse some of Kodak's 2004 balance sheet improvement with an upfront cash payment of $317 million, and installment payments totaling $500 million through 2013. The CreditWatch listing continues to reflect concern about Kodak's near to intermediate term profit and cash flow prospects
