The ratings on Carestream Health Inc. (Carestream) reflect Standard&Poor's Ratings Services' expectation that the company is likely to maintain its operating margin of about 20%, despite the challenging long-term outlook for the analog medical imaging industry. We believe these margins and capital expenditures of 3 to 4% of revenues should enable the company to continue 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. Their products include analog film, laser imagers, digital print film, computed and digital radiography systems, digital dental
