Transcript Biggest Player

Rating Agency
Presented by Group 1
Why do Rating Agency Exist?
Issuers
Investors and Lenders
 Improved funding flexibility
 A simple indicator of credit risk
 Reduce borrowing costs
 Risk premium assessment. Credit ratings are
an excellent indicator of a bond's future credit
performance"

More access to capital
markets
 Portfolio monitoring and adjustment

Counterparty
risk
assessment, trade finance,  Intermediaries e.g. providing underwriting in
swaps, insurance, etc.
planning, pricing and placement of issues
 Help sales forces to place new issues
 Monitoring counterparty risks
Goldman Sachs
United States of America
Moody’s
United States of America
Fitch IBCA
United States of America
Duff & Phelps Credit Rating Co.
United States of America
Standard and Poor’s
United States of America
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
I)
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
I)
Advisor Services
- Advise people on their investment
II)
Institutional Market Services
- represent Standard &Poor's objective
III)
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.

The End