The ratings on St. Paul, Minn.-based Ecolab Inc. reflect a strong business profile, a conservative financial philosophy, and modest financial risk. The company is the well-entrenched leader in the U.S. institutional warewashing business, a technology- and service-intensive segment of the chemical sector. Ecolab has a large direct sales force and a national distribution network serving most U.S. hospitality chains, which are considerable competitive advantages. Given its significant market penetration, Ecolab uses internal initiatives and midsize acquisitions to provide complementary services to 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
