S&P: Kodak unaffected

Standard & Poor's said Eastman Kodak Co.'s (BBB-/Watch Negative/A-3) planned purchase of the 50% of Kodak Polychrome Graphics LLC that it does not already own does not currently affect its rating or CreditWatch listing.

S&P said the purchase will modestly improve Kodak's profitability and aid progress toward positive operating income of its emerging graphics communications business, a key area targeted for growth.

However, S&P said the transaction will also reverse some of Kodak's 2004 balance sheet improvement with an upfront cash payment of $317 million, and installment payments totaling $500 million through 2013.

The CreditWatch listing continues to reflect concern about Kodak's near to intermediate term profit and cash flow prospects given the accelerating decline of consumer film sales and the uncertain profit potential of its consumer digital and graphics communications businesses, according to S&P.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.