The ratings on Rochester, N.Y.-based Carestream Health Inc. (Carestream) reflect the company's "weak" business risk profile and "aggressive" financial risk profile. Although we expect Carestream's EBITDA margin to remain below 20% due to elevated commodity costs, we believe the company's modest capital expenditures should enable the company to continue to generate good free cash flow of more than $100 million and maintain leverage of 4x to 5x--a level we consider appropriate for the rating. 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 imaging systems, dental practice management software, advanced picture-archiving and communications systems,
