Fitch's view with organization stays negative
DOW JONES NEWSWIRES
Fitch Ratings lowered its rating upon Eastman Kodak Co. (EK) even more straight into unhealthy territory, following on from the attempting digital camera in addition to printer manufacturer's producer continue 7 days ripped $160 million out of its consumer credit line, most likely signifying weaker-than-expected cash flow.
The credit rater stated that on going diminish successful to get classic motion picture along with heightened portion charges will harm the particular company's seasonally good second 50 % associated with 2011, leading to funds generally flows under historic levels. Kodak have been paying capital to be able to refocus its operations around your professional and also client printing business.
The company's issuer default rating had been lowered by two notches in order to CC, accomplishing a level in which suggests that your "default regarding quite a few kind is found probable." Fitch's view continues to be negative.
Shares slumped 15% in order to $1.56 throughout latest trading. The stock possesses slipped 71% that year.
Fitch additionally believes that potential proceeds from the particular sale of your part of the business' patent collection while in the absence of your improvement with cost-free profit wouldn't materially boost Kodak's credit profile.
On Tuesday, peer Moody's Investors Service lowered its rating by way of your notch to be able to Caa2, telling the particular proceed to bring from your line of credit signaled weakness in front of what is typically its most effective quarter for producing cash. Standard & Poor's Ratings Services decreased the organization by way of two notches in February.
-By John Kell, Dow Jones Newswires; 212-416-2480; john.kell@dowjones.com
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