The rating reflects Standard&Poor's Ratings Services' concern about Eastman Kodak Co.'s earnings and cash flow prospects in light of the ongoing and rapid deterioration of its traditional consumer imaging business, the unproven profit potential of its consumer and nonconsumer digital imaging businesses, its high cash restructuring costs, and its leveraged financial profile. These risks are only partially offset by Kodak's good geographic diversity and competitive position in various digital imaging markets. Although Kodak announced earlier this month that it is exploring strategic alternatives for its Health group, the final outcome is considerably uncertain. If the company sells all or a portion of this business, it may be required under its $2.7 billion credit agreement to pay down term
