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S&P assigns junk-grade 'B-' rating to Kodak

NEW YORK (AP) -- Standard & Poor's Ratings Services said Monday that it assigned a junk-grade credit rating to Eastman Kodak Co., which emerged from bankruptcy protection in September.

The Rochester, N.Y.-based photography pioneer has shed many of its products and services. It is now trying to make its way as a much smaller company focused on commercial and packaging printing.

But S&P predicted that the new Kodak would still have a tough time stabilizing revenues and growing its operating earnings. The ratings agency said that Kodak has a small share of a large, mature and competitive global market for commercial printing. S&P also expects declines in Kodak's commercial film and consumer inkjet businesses.

However, S&P noted that Kodak's cash balances of more than $800 million give the company a cushion if its financial results are volatile.

S&P assigned a "B-" corporate credit rating to Kodak, which is now a privately held company. The outlook on the rating is stable.