The rating on Rochester, N.Y.-based Eastman Kodak Co. reflects our concern about the company's earnings and cash flow prospects. This concern is based on the rapid deterioration of the company's traditional consumer imaging business, the unproven long-term profit potential of its consumer digital imaging businesses, intermediate-term potential for a decline in its entertainment imaging businesses, significant discretionary cash flow deficits, vulnerability to economic pressures, and its leveraged financial profile. In the third quarter of 2009, Kodak's revenue fell 26%, while EBITDA plunged nearly 92%. Much of the drop was related to continued economic weakness, secular declines in Kodak's traditional business, and an expected decline in intellectual property revenue and earnings. In the third quarter of 2008, the company recognized revenue
