The ratings on St. Paul, Minn.-based 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 segment of the chemical sector. A large direct sales force and a national distribution network serving most U.S. hospitality chains are significant competitive advantages. Given its significant market penetration, Ecolab uses internal initiatives and midsize acquisitions to provide complementary services for its institutional customers and to expand its presence in the food service and health care industries. Management fortifies the company's competitive position by extending its proprietary technology and developing new products. The company's internal cash generation consistently exceeds operational needs and profitability measures are strong. Return
