A large cash balance Competitive positions in certain digital imaging markets Rapid deterioration of its traditional consumer imaging business Potential for a decline in its entertainment imaging businesses Unproven, long-term profit potential of its consumer digital-imaging businesses Significant discretionary cash flow deficits Vulnerability to economic cyclicality High lease- and pension-adjusted leverage The rating reflects our concern about Rochester, N.Y.-based Eastman Kodak Co.'s earnings and cash flow prospects. This concern is based on the rapid deterioration of the company's traditional consumer imaging business, its unproven long-term profit potential of its consumer digital imaging businesses, longer-term potential for a decline in its entertainment imaging businesses, significant discretionary cash flow deficits, vulnerability to economic pressures, and its leveraged financial profile. The weak economy,
