Standard & Poor's

Standard & Poor's
Name	Standard & Poor's
Type	Public subsidiary
Industry	Financial services
Founded	0 1860 (as Poor's Publishing)
Founder	Henry Varnum Poor
Hq location	55 Water Street, New York City, New York, United States
Products	Credit ratings, market indices
Parent	S&P Global

Standard & Poor's is a leading financial services company renowned for its credit ratings and influential market indices. It operates as a key division within the publicly traded corporation S&P Global, providing essential risk assessment and benchmarking tools for global capital markets. The firm's evaluations and indices are closely monitored by investors, corporations, and governments worldwide, significantly impacting investment decisions and economic policy.

History

The company's origins trace back to 1860 with the publication of *History of Railroads and Canals in the United States* by financial analyst Henry Varnum Poor. This work evolved into Poor's Publishing, which provided investors with information on the burgeoning railroad industry. In 1906, Luther Lee Blake founded the Standard Statistics Bureau, which compiled financial data on industrial companies. Following the Wall Street Crash of 1929, the demand for independent financial analysis surged, leading to the 1941 merger of Poor's Publishing and Standard Statistics to form the modern entity. A pivotal moment came in 1957 with the launch of the S&P 500, which became a definitive barometer for the U.S. economy. The firm was acquired by The McGraw-Hill Companies in 1966, later becoming a core business unit of the spun-off S&P Global in 2016.

Products and services

Its primary offerings are comprehensive credit ratings for sovereign and corporate debt issuers, alongside a vast suite of equity and fixed income indices. Beyond these core products, it provides extensive financial research, risk analytics, and valuation services through platforms like Capital IQ and Market Intelligence. The company also offers benchmarks for commodities and real estate, alongside ESG evaluation solutions. These tools are utilized by institutional investors, financial advisors, and regulators in markets from New York to the London and Tokyo exchanges.

Credit ratings

Its credit ratings are forward-looking opinions on the creditworthiness of debt issuers, ranging from AAA (highest) to D (default). These assessments cover sovereign governments, municipalities, corporations, and structured finance products. Analysts evaluate factors such as political risk, economic growth prospects, cash flow, and leverage to assign ratings, which influence interest rates and market access for issuers. The ratings are closely watched by participants in the bond market and can trigger clauses in financial contracts worldwide. Its role as a Nationally Recognized Statistical Rating Organization in the United States underscores its systemic importance in the global financial system.

Market indices

The company maintains one of the world's most extensive families of indices, serving as essential benchmarks and underpinning investment products like exchange-traded funds. Its flagship S&P 500 index tracks 500 large-cap companies listed on the New York Stock Exchange or Nasdaq and is a cornerstone of modern portfolio theory. Other prominent indices include the S&P Global 1200 for international markets, the S&P MidCap 400, and the S&P SmallCap 600. The indices also cover specific sectors, volatility levels, and dividend strategies, providing tools for asset managers from BlackRock to Vanguard.

Corporate structure and ownership

It functions as a principal operating division of S&P Global, a public company listed on the New York Stock Exchange under the ticker symbol SPGI. S&P Global is organized into segments including Ratings, Market Intelligence, Commodity Insights, and Indices, with the ratings and indices businesses being its most publicly recognized. Major shareholders include large institutional investors and asset management firms. The corporate headquarters are located at 55 Water Street in the Financial District of New York City, with offices and analytical teams stationed in major financial centers like London, Hong Kong, and Tokyo.

Regulatory and legal issues

As a Nationally Recognized Statistical Rating Organization designated by the U.S. Securities and Exchange Commission, it is subject to intense regulatory scrutiny, particularly following the Financial crisis of 2007–2008. It faced significant criticism and legal action for its ratings of mortgage-backed securities and collateralized debt obligations in the lead-up to the crisis. In 2015, it reached a historic settlement with the U.S. Department of Justice, several states, and the SEC for alleged fraud in its ratings of residential mortgage-backed securities. The firm continues to navigate a complex global regulatory landscape involving authorities like the European Securities and Markets Authority and is a frequent subject of congressional hearings and financial reform debates.

Category:Financial services companies of the United States Category:Companies based in Manhattan Category:Credit rating agencies