Standard&Poor's Ratings Services placed its 'BBB+' long-term and 'A-2' short-term ratings on photography firm Eastman Kodak Co. on CreditWatch with negative implications. Kodak is headquartered in Rochester, N.Y., and had $2.7 billion in debt on March 31, 2003. The CreditWatch placement follows Kodak's announcement that its second-quarter operating income before restructuring and nonrecurring items could be less than half of its previous forecast due to consumer film and paper sales that were significantly lower in Asia as a result of severe acute respiratory syndrome (SARS), and moderately lower in the U.S. and Europe due to ongoing economic weakness, pricing pressure, and digital substitution. Reduced film and paper sales volumes will reduce profits and margins because of reduced overhead
