Eastman Kodak Company (NYSE: KODK) Message Board

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Technology Stocks : Eastman Kodak Company (NYSE: KODK)

KODK 6.095

-3.9%

Nov 3 3:59 PM EST

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To: Lahcim Leinad who wrote (392)	9/27/2011 11:54:39 PM
From: Sr K	of 484

Moody's didn't like it either. By DREW FITZGERALD Moody's Investors Service dropped Eastman Kodak Co.'s credit ratings deeper into junk territory, warning that the company's decision to draw on its credit line signals weaker cash flow ahead. Without help from asset sales or intellectual property settlements, Kodak's cash holdings could fall below $700 million during 2012 from $957 million at the end of June, Moody's said. "We anticipate that Kodak will consume cash over the next year, thus weakening its liquidity profile," Moody's said in a release. Kodak Chief Executive Antonio Perez has said the company will end the year with $1.6 billion to $1.7 billion in cash, a forecast that counts on income from patent settlements, asset sales and improvements in the company's businesses. Kodak spokesman Gerard Meuchner said Tuesday the company remains focused on turning itself into a profitable digital business. Kodak is burning cash as it attempts to turn itself into a company focused on printing amid the decline of its traditional film business. Moody's said the company's decision to draw down $160 million from its $400 million credit facility signaled weakness, as it came ahead of what is usually Kodak's strongest quarter for generating cash. Moody's lowered Kodak's rating one notch to Caa2, eight steps below investment grade. Its outlook remains negative, reflecting its view that Kodak's liquidity position will likely weaken in the immediate term. wsj.com

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