Moody’s alters Ecolab view to negative

Moody’s Investors Service said it revised the outlook for Ecolab Inc. to negative from stable and affirmed its A3 senior unsecured rating.

“The revision of the outlook to negative reflects weaker-than-expected credit metrics following the Purolite acquisition and a delay in bringing leverage metrics commensurate with the rating until 2024,” the agency said in a press release.

Moody’s noted Ecolab has raised prices and energy surcharges, which should help earnings growth in the second half of 2022.

“However, slower economic growth, particularly in Europe where the company generates about 20% of sales, and negative impact from currency translation (more than 50% of sales are outside of the U.S.) will likely offset benefits from pricing actions, resulting in weaker credit metrics for longer,” Moody’s said.

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