On Sept. 30, 2005, Standard&Poor's Ratings Services lowered its debt ratings on Eastman Kodak Co. The corporate credit rating was lowered to 'BB-' from 'BB'. All ratings, with the exception of the '2' recovery rating on the company's proposed $2.5 billion-$2.7 billion secured bank loan (indicating the expectation for substantial {80%-100%} recovery of principal in the event of a payment default), remain on CreditWatch with negative implications, pending the satisfactory closing of the bank loan deal. The ratings were placed on CreditWatch July 21, 2005. As of June 30, 2005, the Rochester, N.Y.-based imaging company had $3.7 billion in debt. The downgrade reflects increased concern about Kodak's profitability and cash flow, as well as its continued difficulty in
