S&P: Kodak outlook unaffected by sale

Standard & Poor's said that Eastman Kodak Co.'s (BBB-/negative/A-3) plan to sell its Remote Sensing Systems operation to ITT Industries Inc. for $725 million has no affect on its ratings or outlook.

S&P said this business, which provides specialized imaging solutions to government, aerospace, and defense customers, is not core to Kodak's focus on the consumer, commercial, and health imaging markets. This business generated about $425 million in revenue in 2003 and the sale is not expected to meaningfully affect Kodak's profitability.

Net cash proceeds of about $475 million will provide flexibility for Kodak to reduce debt while also making acquisitions to enhance its position in digital imaging in core markets.

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