The ratings on Ecolab Inc. reflect an above-average business profile and a conservative financial philosophy. The company is the well-entrenched leader in the U.S. institutional warewashing business, a technology- and service-intensive sector. Management continues to fortify its competitive position by extending its proprietary technology base and developing new products. A large direct sales force and a national distribution network serving most U.S. hospitality chains are significant competitive advantages. The company's internal cash generation consistently exceeds operational needs, and profitability measures are strong; return on capital for the past five years has remained near 30%, comparing favorably with that of most specialty chemical companies. The firm benefits from a significant international presence. The recent purchase of the remaining 50% of its
