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Rating Agency. Presented by Group 1. Why do Rating Agency Exist?. Biggest Player. Standard & Poor’s. Background. A merger in 1941 of Standard Statistics and Poor's Publishing Company
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Rating Agency Presented by Group 1
Biggest Player Standard & Poor’s
Background • A merger in 1941 of Standard Statistics and Poor's Publishing Company • The pre-eminent global provider of independent highly valued investment data, valuation, analysis and opinions.
Job Nature • It contains THREE business units: • a) Corporate Value Consulting • b) Credit Market Services • c) Investment Service
Corporate Value Consulting • I) Corporate Finance Consulting • Fills the void in the deal process by providing impartial, ongoing, advisory assistance • Three typical services: • Fairness opinions • Merger and acquisition advisory • Financial modeling
Corporate Value Consulting II) Value Consulting • Offers analytical models and organizational processes to assist management through the strategic business decision making. III) Financial Reporting and Tax Valuation - Offers valuation services that meet the most sophisticated financial reporting, tax, and regulatory
Credit Market Services • Corporate and Government Rating Services - Provides credit analysis services for corporates, project finances, public financings and financial service companies. - It contains FOUR units: i) Corporate Credit Ratings ii) Issue Credit Ratings iii) Entity Credit Ratings iv) Bond Fund Ratings
Credit Market Services II) Structured Finance Rating Services - Provides credit analysis products and services for securitized financings in the global capital markets III) E-Business Services - to deliver CMS' credit information, descriptive data, evaluations and corporate actions content to customers.
Credit Market Services IV) Risk Solutions - Offers a range of products and services to credit management needs of financial institutions and corporations
Investment Services • Advisor Services - Advise people on their investment II) Institutional Market Services - represent Standard &Poor's objective analysis to the investment community • Portfolio Services - provides investment portfolio strategies and stock selection services.
How To Make Money • makes use of its reputation and influence of its ratings to attract companies provides ratings • and thus incomes of Standard & Poor's are mainly came from fees received from those companies it rated.