The ratings on Eastman Kodak Co. reflect its leading position in the U.S. and global markets for traditional photography products and services, good geographic diversity, solid position in health imaging, and Standard&Poor's expectation that Kodak will keep earnings relatively stable in 2004 and maintain strong credit measures. Ratings also recognize Kodak's increasing business risk as its markets transition to digital technologies, doubts about the profit potential of digital imaging relative to conventional photography, challenges associated with entering new markets for commercial and consumer ink jet printing, and intense competition in its traditional and digital imaging markets. In addition, ratings consider the financial burden of its significant unfunded postretirement benefit liabilities and the potential for Kodak's sizable acquisition plan
