SPGI

SPGI

SPGI is a leading global provider of financial intelligence and analytics, operating through several well-known brands. The company's core offerings include credit ratings, market research, and financial data services, which are utilized by institutional investors, corporations, and governments worldwide. Its operations are critical to the functioning of global capital markets, providing assessments of credit risk and economic insights that inform investment and policy decisions.

History

The company traces its origins to the 1860 publication of Henry Varnum Poor's *History of the Railroads and Canals of the United States*, which evolved into the Poor's Publishing Company. In 1941, Standard Statistics Bureau, founded by Luther Lee Blake, merged with Poor's to form Standard & Poor's Corporation. The modern entity was created in 1966 when The McGraw-Hill Companies acquired Standard & Poor's. A pivotal moment came in 2011 when The McGraw-Hill Companies announced the separation of its education and financial services divisions; the latter, which included Standard & Poor's, was spun off as a separate publicly traded company. In 2016, the corporation rebranded under its current ticker symbol to better reflect its diversified portfolio beyond the iconic credit rating agency.

Business segments

The company is organized into three primary reporting segments. The Ratings segment, operated through S&P Global Ratings, provides credit ratings and research on entities ranging from sovereign nations to municipal bonds and structured finance products. The Market Intelligence segment, a product of the 2018 merger with IHS Markit, delivers integrated financial information, analytics, and workflow solutions via platforms like Capital IQ and S&P Global Market Intelligence. The Commodity Insights segment, formerly known as Platts, is a foremost source of benchmark price assessments for the energy and commodities markets, covering everything from crude oil to lithium.

Financial performance

The company reports robust financial results driven by its diversified revenue streams and subscription-based business model. Key financial metrics are closely watched by analysts on Wall Street, with significant revenue generated from its Ratings and Market Intelligence segments. Its performance is influenced by activity in global capital markets, mergers and acquisitions volume, and commodity price volatility. The acquisition of IHS Markit significantly expanded its scale and product offerings, contributing to increased revenue and adjusted EBITDA. The company is a constituent of the S&P 500 index and is listed on the New York Stock Exchange.

Corporate governance

The company is overseen by a Board of Directors comprising independent and executive members, with committees dedicated to audit, compensation, and nominating and governance. Key leadership has included executives like Douglas L. Peterson, who served as President and CEO. The company maintains a comprehensive set of corporate governance guidelines and a code of business ethics for all employees. Its governance practices are scrutinized given the essential role its credit ratings play in the global financial system, and it regularly engages with regulators such as the U.S. Securities and Exchange Commission under rules established by the Dodd-Frank Act.

Acquisitions and divestitures

The company has grown significantly through a strategic acquisition strategy. Major transactions include the 2016 purchase of The Climate Corporation's weather data division, enhancing its commodities analytics. The landmark $44 billion merger with IHS Markit in 2022 created a powerhouse in financial data and analytics. Other notable acquisitions have included Panjiva, a supply chain intelligence firm, and 451 Research, a technology research group. The company has also divested non-core assets, such as its engineering solutions business sold to KBR, Inc., to sharpen its focus on financial information services.

Industry and competition

The company operates in the highly competitive financial data and analytics industry. Its primary competitors in the credit ratings sector are Moody's Investors Service and Fitch Ratings, collectively known as the "Big Three" Nationally Recognized Statistical Rating Organizations. In the market intelligence and commodity information spaces, it competes with giants like Bloomberg L.P., Refinitiv (owned by the London Stock Exchange Group), and FactSet. Competition is based on data accuracy, analytical depth, technological innovation, and global reach. The industry is subject to intense regulatory oversight from bodies like the European Securities and Markets Authority and the Securities and Exchange Commission.

Category:Financial services companies of the United States Category:Companies listed on the New York Stock Exchange