A meaningful cash balance following the sale of the Health Group; Leading positions in certain areas of digital imaging; and Modest business diversity provided by its Graphic Communications Group. Declining prospects for conventional imaging businesses as these markets transition to digital technologies; Longer-term potential for decline in the currently stable entertainment imaging business; Still-developing and highly competitive markets for digital imaging; Meaningful cash restructuring costs; and High leverage when including postretirement obligations. The rating on Eastman Kodak Co. reflects Standard&Poor's Ratings Services' concern about the company's earnings and cash flow prospects in light of the ongoing and rapid deterioration of its traditional consumer imaging business, the unproven long-term profit potential of its consumer digital imaging businesses, its still-meaningful
