Tear Sheet: Ecolab Inc.

We anticipate performance improvement in 2023 relative to 2022, however we expect funds from operations (FFO) to debt will remain below 30% unless there is a sustained improvement in earnings as demand rebounds in the back half of the year. Ecolab constantly raised prices throughout 2022, allowing it to pass through high input costs to customers and maintain revenue growth year over year. Additionally, actions to improve productivity and supply chain durability increased operating efficiency and led to year-over-year EBITDA growth despite tough macroeconomic conditions across its end markets that reach more than 170 countries. Despite harsh business conditions in 2022 across North America, Europe, and Asia, led by inflation and supply chain disruptions, Ecolab managed to improve key credit

...Ecolab Inc. remains on negative outlook as credit metrics persist below historical levels which we consider to be weak for the rating. We anticipate performance improvement in 2023 relative to 2022, however we expect funds from operations (FFO) to debt will remain below 30% unless there is a sustained improvement in earnings as demand rebounds in the back half of the year. Ecolab's proactive measures taken to combat inflation and poor macroeconomic conditions have proved effective. Ecolab constantly raised prices throughout 2022, allowing it to pass through high input costs to customers and maintain revenue growth year over year. Additionally, actions to improve productivity and supply chain durability increased operating efficiency and led to year-over-year EBITDA growth despite tough macroeconomic conditions across its end markets that reach more than 170 countries. Ecolab's credit metrics are poised to continue improvement in 2023. Despite harsh business conditions in 2022 across North...

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