Moody's reviews Ecolab

Moody's Investors Service said it placed the A2 long-term rating and Prime-1 short term rating of Ecolab Inc. on review for downgrade.

The review was prompted by the company's announcement that it has entered into a definitive agreement to acquire Nalco Holding Co. (Ba2) for $8.1 billion, including $2.7 billion of Nalco's net debt, according to the agency.

As of March 31, Ecolab's debt-to-EBITDA ratio will increase to more than 3.5 times pro forma for the acquisition from 1.6 times.

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