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