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12:56 am
Tue October 15, 2013

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.