Fitch Rating yesterday cut its ratings on Eastman Kodak to junk status, citing competition and recent debt-financed acquisitions as factors in its decision. Fitch cut Kodak's senior unsecured debt by one notch to "BB-plus," the highest junk rating, from "BBB-minus." Fitch cut its commercial paper rating to "B" from "F3" and withdrew the commercial paper rating. The actions affect about $2.3 billion of debt. Ratings downgrades to junk can significantly increase borrowing costs. The outlook is negative, meaning another rating cut is likely over the next one to two years.
