The ratings on Ecolab Inc. reflect an above-average business profile. The company is the well-entrenched leader in the U.S. institutional warewashing business, a technology- and service-intensive sector. The firm benefits from a significant international presence. The recently announced cash purchase of Henkel's share of the Henkel-Ecolab joint venture would strengthen Ecolab's presence in Europe. In addition, Ecolab would have complete control over the joint venture's operations, which could improve a somewhat lackluster financial performance. The cash purchase of Henkel's interest in the joint venture will result in a moderate increase in financial risk, but credit protection measures should still be satisfactory for the rating. Management has a track record of conservative financial management, and Ecolab is expected to apply ample
