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, and solid position in health imaging. Standard&Poor's Ratings Services expects that Kodak will stabilize or improve earnings in 2004 and maintain strong credit measures. The ratings also recognize Kodak's increasing business risk as its markets transition to digital technologies, its challenges associated with establishing profitable positions in new digital markets, the uncertain profit potential of digital imaging relative to conventional photography, and intense competition in the company's traditional and digital imaging markets. The ratings also consider the financial burden of the company's significant underfunded postretirement benefit liabilities and the potential for Kodak's sizable
