Leading brand name and dominant global position in medical and dental film; Sizeable equity investment from financial sponsor Onex Partners L.P.; and Low capital intensity (capital expenditures to sales of about 2%). Shift in technology from analog to digital has significantly hampered growth prospects in film and printing business; Declining demand for high-margin photographic film and supplies; Significant exposure to rising raw material costs; and Pricing pressure on digital cameras and film. The ratings on Carestream Health Inc. reflect the firm's highly leveraged capital structure and business position as a manufacturer of both traditional film and digital imaging products in the rapidly changing and challenging diagnostic imaging industry. Carestream manufactures and sells products such as analog film, laser imagers, digital
