Moody's Lowers Eastman Kodak Ratings
The rating downgrade reflects our expectations that "ongoing weakness in the company's core business operations in addition to a softening demand environment will pressure operating performance and liquidity over the foreseeable future," said Moody's senior vice president, Richard Lane. Kodak's decision on September 23, 2011 to draw down $160 million from its $400 million secured revolving credit facility signals weaker cash flow prospects, as the draw was just prior to what is usually Kodak's strongest cash flow quarter (the 4th quarter).
Although Kodak had $957 million of cash balances at June 30, 2011 and no material debt maturities until November 2013, "we anticipate that Kodak will consume cash over the next year, thus weakening its liquidity profile," said Lane.
- Companies:
- Eastman Kodak Co.
- People:
- Moody
- Richard Lane