Fitch's views on business remains negative
DOW JONES NEWSWIRES
Fitch Ratings reduced its ranking on Eastman Kodak Co. (EK) further into poor quality territory, following a struggling digicam and printer manufacturer's producer yesterday ripped $160 trillion from its credit ratings line, in all likelihood signifying weaker-than-expected profit flow.
The consumer credit rater stated the particular carried on decrease sought after pertaining to traditional film and also increased component costs would certainly injure this corporate entity's seasonally good minute 50 % involving 2011, resulting in cash comes beneath historical levels. Kodak features been paying money to refocus its surgical procedures all around a new commercial plus purchaser printer business.
The business' issuer default standing seemed to be below of by way of two steps to CC, getting a degree that will suggests than a "default involving some form shows up probable." Fitch's views remains negative.
Shares slumped 15% that will $1.56 inside recently available trading. The stock provides dropped 71% this kind of year.
Fitch furthermore considers the particular possible proceeds from your sale of some on the corporation's patent account with the lack of much better inside zero cost net income won't materially enhance Kodak's credit profile.
On Tuesday, peer Moody's Investors Service lowered it is history by the notch that will Caa2, declaring this proceed to pull on the credit line signaled weak spot in front of just what exactly is generally its strongest quarter to get making cash. Standard & Poor's Ratings Services decreased the corporation by two steps with February.
-By John Kell, Dow Jones Newswires; 212-416-2480; john.kell@dowjones.com
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