Standard&Poor's Ratings Services' ratings on Rochester, N.Y.-based Carestream Health Inc. reflect our expectation that Carestream is likely to continue to improve its credit measures in the near-term despite the challenging long-term outlook for the analog medical imaging industry. We believe stable operating margin (before depreciation and amortization [D&A]) of more than 20% and modest capital expenditures will enable the company to generate good free cash flow and gradually pay down debt. The ratings on Carestream reflect the firm's weak business risk profile and aggressive financial risk profile. Carestream manufactures and sells traditional film and digital imaging products in the rapidly changing and challenging diagnostic imaging industry. Products include analog film, laser imagers, digital print film, computed and digital
