The rating reflects our concern about Rochester, N.Y.-based Eastman Kodak Co.'s earnings and cash flow prospects. This concern is based on the rapid deterioration of the company's traditional consumer imaging business, its unproven long-term profit potential of its consumer digital imaging businesses, longer-term potential for a decline in its entertainment imaging businesses, significant discretionary cash flow deficits, vulnerability to economic pressures, and its leveraged financial profile. The weak economy, secular pressure on the film business, and unfavorable foreign-exchange movements contributed to revenue from digital businesses declining 28% in the second quarter. This underperformance heightens our concern regarding the company's increasing reliance on its digital businesses while its traditional imaging business deteriorates. Revenue for Kodak's traditional businesses declined 30% in the
