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. The ratings also recognize Kodak's increasing business risk as its markets transition to digital technologies, challenges associated with establishing profitable positions in new digital markets, doubts about the profit potential of digital imaging relative to conventional photography, and intense competition in its traditional and digital imaging markets. In addition, the ratings consider the financial burden of the company's significant unfunded postretirement benefit liabilities and the potential for Kodak's sizable acquisition plan
