Research Update: Eastman Kodak Co. Outlook Revised To Negative From Stable On Heightened Refinancing Risk; Ratings Affirmed

Eastman Kodak Co. is facing a $300 million maturity—consisting of $100 million of senior secured convertible notes and $200 million of preferred stock--in November 2021, 16 months from now. We believe Kodak's $209 million cash position, in addition to its persistent weak operating performance, present a material risk that the firm will be unable to meet this maturity payment without extending the maturity under its obligations. We are revising our outlook on Kodak to negative from stable because we believe the company's current capital structure is unsustainable, and there may be significant risk of default over the next 12 months unless the firm can refinance or otherwise obtain relief under its outstanding obligations. The negative outlook reflects our view that

...- Eastman Kodak Co. is facing a $300 million maturity--consisting of $100 million of senior secured convertible notes and $200 million of preferred stock--in November 2021, 16 months from now. - We believe Kodak's $209 million cash position, in addition to its persistent weak operating performance, present a material risk that the firm will be unable to meet this maturity payment without extending the maturity under its obligations. - We are revising our outlook on Kodak to negative from stable because we believe the company's current capital structure is unsustainable, and there may be significant risk of default over the next 12 months unless the firm can refinance or otherwise obtain relief under its outstanding obligations. - The negative outlook reflects our view that the current market condition, in addition to Kodak's standing in credit markets, could make refinancing very challenging....

Research Update