S&P rates Carestream B+, loans B+, B

Standard & Poor's said it assigned its B+ corporate credit rating to Carestream Health Inc.

At the same time, B+ bank loan ratings and 2 recovery ratings were assigned to the company's proposed $150 million revolving credit facility and $1.5 billion first-lien senior secured term loan, indicating expectation of substantial recovery of principal in the event of a default, the agency said.

In addition, S&P said it assigned its B bank loan rating and 3 recovery rating to the company's $440 million second-lien senior secured term loan.

The outlook is stable.

S&P said that proceeds will be used to finance a leveraged buyout of Carestream Health, formerly the Health Group division of Eastman Kodak Co. (B+/Watch negative).

The ratings on Carestream reflect the firm's highly leveraged capital structure and business position, operating as a manufacturer of both traditional film and digital imaging products in the rapidly changing and challenging diagnostic imaging industry, the agency said.

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