The ratings on Washington, D.C.-based Danaher Corp. reflect the company's excellent business risk profile, modest financial risk profile, and ample liquidity, offset to some extent by its somewhat aggressive business objectives and moderately conservative financial policies. Danaher is a diversified industrial manufacturer primarily operating in three business segments--professional instrumentations (environmental, medical technologies, and electronic test operations), industrial technologies (mainly motion and product identification platforms), and tools and components. Although Danaher's end markets are moderately cyclical, earnings and cash flow stability is achieved by the company's strong brand name recognition, its customer, end-market, and geographic diversity, its limited capital intensiveness, and its strong asset management. The company's acquisitions in markets with higher gross margins--such as dental, life sciences, and product identification--have
