Fitch cuts Kodak

Fitch Ratings said it downgraded Eastman Kodak Co.'s issuer default rating to CCC from B-, senior secured revolving credit facility to B+ with a recovery rating of RR1 from BB- with a recovery rating of RR1, senior secured second priority debt to B+ with a recovery rating of RR1 from BB- with a recovery rating of RR1 and senior unsecured debt to CCC with a recovery rating of RR4 from B+ with a recovery rating of RR2.

The outlook is negative.

The downgrades reflect Kodak's continued struggles to gain traction in its digital businesses as secular declines persist and broaden to entertainment film within the traditional film business, Fitch said.

Although a near-term default appears unlikely given Kodak's significant cash position, the agency said it believes the company's credit profile has deteriorated due to ongoing pressures on revenue, operating margin and free cash flow.

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