Leading brand name and dominant global position in medical and dental film; and Sizable equity investment from financial sponsor Onex Partners L.P. Significant exposure to raw material costs; Shift in technology from analog to digital, which has significantly hampered growth prospects in the film and printing business; and Declining demand for high-margin photographic film and supplies. The ratings on Rochester, N.Y.-based Carestream Health Inc. (Carestream) reflect Standard&Poor's Ratings Services' expectation that, although its operating margin is likely to fall below 20% due to rising commodity costs, we believe the company's capital expenditures of 3% to 4% of revenues should enable the company to continue to generate good free cash flow of more than $100 million and maintain leverage
