Content deleted Content added
Reverted 2 edits by 69.47.203.160 (talk): Non-constructive edits |
→See also: added other 2 agencies in the oligopoly |
||
| (43 intermediate revisions by 36 users not shown) | |||
Line 1:
{{short description|American credit rating agency}}
{{redirect|S&P|the broadcasting entity|Broadcast Standards and Practices}}
{{Use mdy dates|date=July 2011}}
{{Infobox company
| name
| logo
| logo_size = 250px
|
|
| founder = [[Henry Varnum Poor]]
| area_served =
| key_people = John Berisford
| products =
| services =
| revenue = {{profit}}US$2.61 billion (2009)<ref>{{cite web |url=http://www.standardandpoors.com/about-sp/key-statistics/en/us |title=S&P | About S&P | Americas – Key Statistics |publisher=Standard & Poor's |access-date=August 7, 2011 |url-status=live |archive-url=https://web.archive.org/web/20110816010118/http://www.standardandpoors.com/about-sp/key-statistics/en/us |archive-date=August 16, 2011 |df=mdy-all }}</ref>
| operating_income =
|
| owner =
| num_employees = 10,000+
| parent = [[S&P Global]]
| divisions =
|
| footnotes =
| foundation = {{Start date and age|1860}}<br>{{start date and age|1941}} (present corporation status)
| location_city = [[New York City]], [[New York state|New York]]
| location_country = U.S.
| predecessor
| slogan =
| homepage = {{url|https://spglobal.com/ratings/}}
}}
'''S&P Global Ratings''' (previously '''Standard & Poor's''' and informally known as '''S&P''') is an American [[credit rating agency]] (CRA) and a division of [[S&P Global]] that publishes financial research and analysis on [[capital stock|stock]]s, [[Bond (finance)|bonds]], and [[commodity|commodities]]. S&P is considered the largest of the [[Big Three (credit rating agencies)|Big Three]] credit-rating agencies, which also include [[Moody's Investors Service]] and [[Fitch Ratings]].<ref>{{cite web |author= Blumenthal, Richard |url= http://www.juneauempire.com/stories/050509/opi_436594375.shtml |title= Three Credit Rating Agencies Hold Too Much of the Power |publisher= Juneau Empire – Alaska's Capital City Online Newspaper |date= May 5, 2009 |access-date= August 7, 2011 |url-status= dead |archive-url= https://web.archive.org/web/20111101123455/http://juneauempire.com/stories/050509/opi_436594375.shtml |archive-date= November 1, 2011 |df= mdy-all }}</ref> Its head office is located on [[55 Water Street]] in [[Lower Manhattan]], [[New York City]].<ref>{{cite web
|url = http://ratings.standardandpoors.com/about/get-in-touch
|publisher = Standard & Poor's
Line 41:
}}</ref>
==Corporate history==
[[File:Poor's Directory of Railroad Officials 1893 (Frontispiece).jpg|thumb|right|"Poor's Directory of Railroad Officials", 1893 (frontispiece)]]The company traces its history back to 1860, with the publication by [[Henry Varnum Poor]] of ''
|title = Corporations: Standard & Unpoor
|url = http://www.time.com/time/magazine/article/0,9171,939281,00.html
Line 48:
|newspaper = Time magazine
|date = October 13, 1961
|url-status =
|archive-url = https://web.archive.org/web/20111220063352/http://www.time.com/time/magazine/article/0,9171,939281,00.html
|archive-date = December 20, 2011
Line 59:
=={{anchor|credit ratings}}Credit ratings==
As a [[credit rating agency]] (CRA), the company issues credit ratings for the debt of public and private companies, and
===
[[File:
{
{{!}}-
{{!}}style="background: #ffff66"{{!}}BBB
{{!}}style="background: #ffff00"{{!}}BBB-
{{!}}-
{{!}}style="background: #ffcc99"{{!}}BB+
{{!}}style="background: #ffcc66"{{!}}BB
{{!}}style="background: #ffc200"{{!}}BB-
{{!}}style="background: #ff9933"{{!}}B+
{{!}}style="background: #ff6600"{{!}}B
{{!}}style="background: #ff6666"{{!}}B-
{{!}}style="background: #ff3333"{{!}}CCC+
{{!}}style="background: #e80000; color: #ffffff"{{!}}CCC
{{!}}style="background: #af0000; color: #ffffff"{{!}}CCC-
{{!}}style="background: #000000; color: #ffffff" {{!}}SD/D
{{!}}}]]
'''Investment Grade'''
Line 102 ⟶ 113:
===Short-term issue credit ratings===
The company rates specific issues on a scale from A-1 to D. Within the A-1 category, it can be designated with a plus sign (+). This indicates that the issuer's commitment to meet its obligation is very strong. [[Country risk]] and currency of repayment of the obligor to meet the issue obligation are factored into the credit analysis and reflected in the issue rating.
* '''A-1''': obligor's capacity to meet its financial commitment on the obligation is strong
Line 115 ⟶ 126:
===CGS scores===
S&P developed criteria and methodology for assessing corporate governance. It started issuing Corporate Governance Scores (CGS) in 2000. CGS assessed companies' corporate governance practices. They were assigned at the request of the company being assessed, were non-public (although companies were free to disclose them to the public and sometimes did) and were limited to public U.S. corporations. In 2005, S&P stopped issuing CGS.<ref>{{cite web|last1=Taub|first1=Stephen|title=S&P Stops Issuing Governance Scores|url=http://ww2.cfo.com/risk-compliance/2005/09/sp-stops-issuing-governance-scores/|website=CFO|access-date=28 May 2017|date=9 September 2005|url-status=live|archive-url=https://web.archive.org/web/20170827195138/http://ww2.cfo.com/risk-compliance/2005/09/sp-stops-issuing-governance-scores/|archive-date=August 27, 2017|df=mdy-all}}</ref>
===GAMMA scores===
S&P's Governance, Accountability, Management Metrics and Analysis (GAMMA) scores were designed for equity investors in emerging markets and focused on non-financial-risk assessment, and in particular, assessment of [[corporate
===Management and Governance criteria===
In November 2012, S&P published its criteria for evaluating insurers and non-financial enterprises' management and governance credit factors.<ref>{{cite web|title=S&P report on criteria for management and governance scores|url=http://mobile.reuters.com/article/idUSWNA943220121113|website=Reuters|access-date=28 May 2017|date=13 November 2012}}</ref> These scores are not standalone, but rather
== Downgrades of countries ==
=== Downgrade of U.S. long-term credit rating ===
{{Main|United States federal government credit rating downgrade, 2011}}
On August 5, 2011, following enactment of the [[Budget Control Act of 2011]], S&P lowered the US's sovereign long-term credit rating from AAA to AA+.<ref name=Swann>{{cite press release
|author = Swann, Nikola G |display-authors=etal
Line 141 ⟶ 155:
* " Since then, we have changed our view of the difficulties in bridging the gulf between the political parties over fiscal policy, which makes us pessimistic about the capacity of Congress and the Administration to be able to leverage their agreement this week into a broader fiscal consolidation plan that stabilizes the government's debt dynamics any time soon."<ref name=Swann /></blockquote>
The [[United States Department of the Treasury]], which had first called S&P's attention to its $2 trillion error in calculating the ten-year deficit reduction under the Budget Control Act, commented, "The magnitude of this mistake – and the haste with which S&P changed its principal rationale for action when presented with this error – raise fundamental questions about the credibility and integrity of S&
|last = Bellows
|first = John
Line 165 ⟶ 179:
}}</ref>
<blockquote>In taking a longer term horizon of 10 years, the U.S. net general government debt level with the current assumptions would be $20.1 trillion (85% of 2021 GDP). With the original assumptions, the debt level was projected to be $22.1 trillion (93% of 2021 GDP).<ref name=clarifyUS /></blockquote>
In 2013, the Justice Department charged Standard & Poor's with fraud in a $5 billion lawsuit: U.S. v. McGraw-Hill Cos et al., U.S. District Court, Central District of California, No. 13-00779. Since it did not charge Fitch and Moody's and because the Department did not give access to evidence, there has been speculation whether the lawsuit may have been in retaliation
On April 15, 2013, the Department of Justice was ordered to grant S&P access to evidence.<ref name=wsj>{{cite news|last=Stempel|first=Jonathan|title=S&P fails to split up $5 billion U.S. fraud lawsuit|newspaper=WSJ|date=15 April 2014|url=https://www.reuters.com/article/mcgrawhill-sandp-lawsuit-idUSL2N0N71OW20140415|access-date=29 April 2014|url-status=live|archive-url=https://web.archive.org/web/20140429185626/http://www.reuters.com/article/2014/04/15/mcgrawhill-sandp-lawsuit-idUSL2N0N71OW20140415|archive-date=April 29, 2014|df=mdy-all}}</ref>
=== Downgrade of France's long-term credit rating ===
On November 11, 2011, S&P erroneously announced the cut of France's triple-A rating (AAA). French leaders said that the error was inexcusable and called for even more regulation of private credit rating agencies.<ref>[http://www.euronews.net/2011/11/11/sp-downgrades-france-by-mistake/ S&P downgrades France by ‘mistake' | euronews, economy]. Euronews.net. Retrieved on 2013-12-23.</ref><ref>{{cite news
|url = http://www.sfgate.com/cgi-bin/article.cgi?f=/n/a/2011/11/14/financial/f100618S56.DTL
|work = The San Francisco Chronicle
Line 204 ⟶ 203:
|author2=Forelle, Charles
|page=A1}}</ref>
==Publications==
Line 220 ⟶ 214:
===Role in the 2007–08 financial crisis===
Credit rating agencies such as S&P have been cited for contributing to the [[financial crisis of 2007–08]].<ref name=Klein>{{cite
|author = Klein, Joe
|title = Standard & Poor's Downgrades Itself
|url = http://swampland.time.com/2011/08/06/u-s-downgrades-standard-and-poors/
|date = August 6, 2011
|
|access-date = August 6, 2011
|url-status = live
Line 236 ⟶ 230:
Companies pay S&P, Moody's and Fitch to rate their debt issues. As a result, some critics have contended that the credit ratings agencies are beholden to these issuers in a [[conflict of interests]] and that their ratings are not as objective as they ought to be, due to this "pay to play" model.<ref>{{cite web|last1=Efing|first1=Matthias|last2=Hau|first2=Harald|title=Corrupted credit ratings: Standard & Poor's lawsuit and the evidence|url=http://voxeu.org/article/corrupted-credit-ratings-standard-poor-s-lawsuit-and-evidence|website=VoxEU.org|access-date=28 May 2017|date=18 June 2013|url-status=live|archive-url=https://web.archive.org/web/20170703041242/http://voxeu.org/article/corrupted-credit-ratings-standard-poor-s-lawsuit-and-evidence|archive-date=July 3, 2017|df=mdy-all}}</ref>
In 2015, Standard and Poor's paid $1.5 billion to the U.S. Justice Department, various state governments, and the [[California Public Employees' Retirement System]] to settle lawsuits asserting its inaccurate ratings defrauded investors.<ref>{{cite
===Criticism of sovereign debt ratings===
Line 263 ⟶ 257:
|url = https://www.washingtonpost.com/business/economy/sandp-considering-first-downgrade-of-us-credit-rating/2011/08/05/gIQAqKeIxI_story.html
|date = August 5, 2011
|
|access-date = August 5, 2011
|url-status = live
|archive-url = https://web.archive.org/web/20110806010020/http://www.washingtonpost.com/business/economy/sandp-considering-first-downgrade-of-us-credit-rating/2011/08/05/gIQAqKeIxI_story.html
|archive-date = August 6, 2011
|df = mdy-all
}}</ref>
Line 343 ⟶ 300:
* [[Global Industry Classification Standard]]
* [[List of countries by credit rating]]
* [[NRSRO]]
* [[Moody's Ratings]]
* [[Fitch Ratings]]
==References==
Line 349 ⟶ 309:
==External links==
* {{Official}}
* [
* [https://www.spglobal.com/spdji/en/ S&P Dow Jones Indices]
* [https://www.spglobal.com/ratings/en/about/intro-to-credit-ratings Intro to Credit Ratings]
* [https://www.spglobal.com/en/who-we-are/our-history History of Standard & Poor's]
Line 359 ⟶ 319:
{{DEFAULTSORT:Standard and Poor's}}
[[Category:S&P Global| ]]
[[Category:American companies established in 1941]]
[[Category:Financial services companies established in 1941]]
[[Category:Credit rating agencies]]
[[Category:Financial services companies based in New York City]]
[[Category:Financial data vendors]]
[[Category:1941 establishments in New York
[[Category:1966 mergers and acquisitions]]
| |||