In April 2017 U.S.-based medical and dental imaging systems provider Carestream Health Inc. announced it entered into an agreement to sell its Dental Digital business to a private investment fund. In our view, the divestiture reduces diversification, margins, scale, and growth prospects, especially given our expectation for secular revenue declines in the film businesses. However, we now also expect adjusted debt leverage to improve to about 4.5x for 2017, and for leverage to be sustained below 5x, given our expectations for the company to use the proceeds to retire debt, and for cost restructuring initiatives. Aside from that, the company faces substantial approaching maturities in June of 2019, which introduces material refinancing risk. Absent refinancing of the debt over the
