Moody’s… Kodak As Alive as Kojak (EK)

Eastman Kodak Co. (NYSE: EK) was just lowered again by Moody’s with about $1 billion in debt securities affected by the downgrade.  The ratings agency cut Kodak’s corporate credit rating down to Caa3 from Caa2 with an outlook NEGATIVE.  Down in the C’s is just one step above default.  The ratings reflect a deteriorating liquidity outlook and a heightened probability of bankruptcy.  Yes again… Bankruptcy! 

Moody’s is worried about continued cash burning and it brings up the ultimate fear: Kodal might have a limited ability to sell its patents under a bankruptcy filing.

Antonio Perez is still running this company for one reason and one reason only: no one else would be willing to step in.  This is the Kobayashi Maru test from Star Trek but it is not science fiction.

The big drop came yesterday when shares went from north of $0.60 to $0.47 on rumors (reports) of a bankruptcy coming soon and shares are down yet another 3.7% at $0.452 in very active trading.  The current market cap is a mere $122 million. This was a $20.00 stock as recently as December 2007.

JON C. OGG