The ratings reflect Eastman Kodak Co.'s leading position in the U.S. and global markets for its traditional photography products and services, its good geographic diversity (more than half its revenue is generated outside of the U.S.), its moderate financial profile, and its commitment to significant debt reduction over the next few years. The ratings also incorporate Standard&Poor's view that Kodak's business profile has been weakened by tough competition in each of its business units and by the risks associated with the migration from conventional to digital imaging. Standard&Poor's is concerned that the increasingly competitive nature of Kodak's key markets and the transition of its businesses to digital technologies will keep profits and margins below historical levels.
