S&P cuts Kodak unsecured rating deeper into junk

Standard & Poor's on Monday cut its senior unsecured debt rating on Eastman Kodak (EK.N: Quote, Profile, Research) deeper into junk status and said it may cut them again, citing the company's plan to add $2.7 billion in credit facilities.

S&P cut Kodak's senior unsecured rating by one notch to "BB-minus," the third-highest junk rating, from "BB."
S&P said prospects for recoveries, or the amount that investors recoup in a bankruptcy, will likely be reduced for senior unsecured creditors because Kodak is adding a large amount of secured debt, which ranks higher in a bankruptcy. Moreover, it is not clear how well the proposed credit facilities will improve the company's liquidity, S&P said.
Source: Reuters

Posted: Mon - August 15, 2005 at 07:22 PM