S&P:Kodak rating still on watch negative |
|
|
|
Published
:
Wed, 10 Jan 2007 23:58
|
NEW YORK (AFX) - Standard & Poor's Ratings Services said Wednesday its ratings, including the 'B+' corporate credit rating, on Eastman Kodak Co. remain on CreditWatch with negative implications.The ratings were placed on CreditWatch on Aug. 2, following the company's announcement it agreed to sell its Health Group to Canadian investment firm Onex Corp. for up to $2.55 billion.The company said Wednesday it will use some of the proceeds to entirely pay off its $1.15 billion outstanding senior secured term loan, but use of the rest of the funds is still under management review. The transaction is expected to close in the first half of 2007.Rochester, N.Y.-based imaging company Kodak had $3.3 billion in debt as of Sept. 30.'Debt reduction from the proceeds of the transaction may not fully offset what we regard as a negative shift in the company's business portfolio,' said Standard & Poor's credit analyst Tulip Lim. 'We are concerned about this, given the weakened fundamentals of Kodak's traditional businesses and the importance of developing its digital operations.'In resolving the CreditWatch listing, S&P said it will assess Kodak's near- and intermediate-term profit and cash flow potential in light of technology migration pressures, implementation challenges and competition facing the remaining businesses.Lim said the agency's evaluation will also consider the ultimate use of proceeds from the pending sale of Kodak's Health Group.Copyright 2006 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
|
|
|
|
Print this Story
Fitch rates Navistar 'BB-' 