S & P Assigns Junk-Grade Credit Rating To Kodak
(AP & WXXI News) Standard & Poor's, the credit rating agency, has assigned a junk-grade credit rating to Kodak. The company emerged from bankruptcy protection in September.
Kodak has gone through a big transformation, selling off many of its products and services. It is now trying to make its way as a much smaller company focused on commercial printing and packaging.
But S&P predicts that the new Kodak will still have a tough time stabilizing revenues and growing its operating earnings. The ratings agency said that Kodak has a small share of a large, mature and competitive global market for commercial printing. S&P also expects declines in Kodak's commercial film and consumer inkjet businesses.
However S&P did note that Kodak's cash balance of more than $800 million gives the company a cushion if its financial results are volatile.
S and P assigned a B- corporate credit rating to Kodak. The outlook on the rating is stable.