The ratings on St. Paul, Minn.-based 3M Co. reflect its leading market positions, good product diversity, and strong financial profile. The rating also reflects the company's focus on increasing shareholder return and its challenge to accelerate growth from the current portfolio. With over 60,000 products for the industrial, consumer, and life-sciences markets, and its global presence, 3M is able to generate stable earnings and cash flow over business cycles. 3M excels at developing new products, and leveraging key core technologies such as adhesives, films, and abrasives, resulting in returns on capital consistently exceeding 30%. The broad portfolio effect of diverse end markets, combined with a number of strong, leading brands, offsets the competitive nature of many of its markets. Manufacturing
