Fitch said its decision to lower Kodak's outlook from stable to negative was the result of the manufacturer's "continued struggles to gain traction in its digital business segments".

The ratings agency highlighted the significant competition and pricing pressure facing Kodak's Consumer Digital Imaging Group from "rivals with established market positions and greater financial resources than Kodak".

Fitch also questioned what it described as Kodak's "continued reliance on non-recurring intellectual property licensing revenue", without which it claimed the business would be "marginally profitable, if at all".

Kodak responded to the move by stressing its financial strength in the form of $1.3bn (£800m) in cash reserves and a "manageable debt balance". A spokesman said: "Kodak is financially solid and we are taking the right actions to ensure that we remain a strong and enduring competitor."