Ecolab Inc.

S&P Global Ratings' stable outlook on Ecolab Inc. reflects our expectation that its credit metrics will remain appropriate for the current rating over the next two years. More specifically, based on a combination of historical and projected figures, we expect Ecolab's weighted-average FFO to debt will be at or above 30% and its debt to EBITDA will remain below 3x. Key drivers of our projected performance are mid-single-digit total growth driven by volume and pricing increases led by new product introductions and better customer penetration in most major business segments. We don't expect the company to make any large debt-funded acquisitions (e.g., similar to its previous acquisitions such as the 2013 $2.3 billion acquisition of Champion Technologies), but we do

...The company is well positioned as a global leader in a service-intensive segment of the chemicals sector. The company has been growing, organically and through acquisitions, reaching about 12% market share in a fragmented market in 2018. Ecolab has consistently generated solid EBITDA margins at or above 20%. Supporting this pattern is the company's diversified and stable portfolio of products and services, with more than 75% of revenues coming from relatively stable end markets consisting of safe food, healthy environments, and industrial clean water. The company's weighted average credit ratios are appropriate for the rating.We expect the ratio of funds from operations (FFO) to total debt to remain above 30%....

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