S&P Global
S&P Global Inc. is a multinational financial services holding company that delivers credit ratings, benchmarks, analytics, and data across capital, commodity, and automotive markets.[1] Headquartered in Manhattan, New York City, it operates through key divisions including S&P Global Ratings for credit assessments, Market Intelligence for data and research, Commodity Insights for energy and commodities pricing, Mobility for automotive analytics, and S&P Dow Jones Indices for investment benchmarks like the S&P 500.[2] The company's roots trace to 1860 with precursors in financial publishing and railroading data, evolving through mergers such as Standard Statistics merging with Poor's Publishing in 1941 and joining McGraw-Hill in 1966, before rebranding from McGraw Hill Financial to S&P Global in 2016 to emphasize its core intelligence offerings.[3] S&P Global's indices and ratings serve as foundational tools for investors and policymakers, powering trillions in assets under management, though its issuer-pays model for credit ratings has drawn scrutiny for potential conflicts of interest.[4] Notably, the firm faced lawsuits and regulatory actions over inflated ratings of structured finance products preceding the 2008 financial crisis, culminating in a $1.375 billion settlement with the U.S. Department of Justice in 2015, alongside ongoing SEC enforcement for compliance lapses as recently as 2022 and 2024.[5][6][7] In response to political and market pressures, S&P Global ceased incorporating explicit ESG scores into its core credit ratings in 2023, shifting to qualitative assessments to mitigate perceptions of extraneous influences.[8]Historical Development
Origins and Predecessor Foundations
The origins of S&P Global trace back to two independent financial information providers: Poor's Publishing and the Standard Statistics Bureau. In 1860, Henry Varnum Poor published History of the Railroads and Canals of the United States, an 800-page volume compiling financial data on American transportation infrastructure to aid investors amid rapid railroad expansion.[3] This publication marked the inception of systematic analysis for securities evaluation, evolving into Poor's Publishing, which issued annual manuals on railroad bonds and stocks, emphasizing manual assessments of company finances, management, and assets.[9] Complementing this, the Standard Statistics Bureau was founded in 1906 by Luther Lee Blake in New York City to address gaps in data for non-railroad industries, delivering timely statistical compilations, index numbers, and early credit ratings for corporate bonds starting around 1916.[3] By the 1920s, it had developed stock market indicators tracking 233 companies, pioneering quantitative approaches to market measurement amid growing industrial complexity.[9] These entities formed the foundational pillars for subsequent financial data services, with Poor's focusing on qualitative railroad expertise and Standard Statistics on broader industrial statistics, setting the stage for their 1941 merger into Standard & Poor's Corporation, which combined complementary strengths in ratings and indices.[3]Formation and Early Expansion of Standard & Poor's
Standard & Poor's originated from the combination of two pioneering financial information providers: Poor's Publishing, established through the efforts of Henry Varnum Poor, and the Standard Statistics Bureau. In 1860, Henry Varnum Poor published History of the Railroads and Canals of the United States, offering investors detailed data on railroad finances and operations during the Industrial Revolution, which formed the basis for systematic financial analysis of infrastructure.[3] [9] Poor's work expanded into annual manuals evaluating railroad securities, with the company formalizing as H.V. and H.W. Poor Co. around 1867, issuing its first bond ratings in 1916 to assess creditworthiness based on financial metrics.[10] Complementing this, the Standard Statistics Bureau was founded in 1906 by Luther Lee Blake to compile statistical data on non-railroad industrial companies, delivering indexed financial reports that quantified business performance for investors.[3] [9] The formal creation of Standard & Poor's occurred on April 3, 1941, through the merger of Poor's Publishing and Standard Statistics Bureau, forming the Standard & Poor's Corporation.[3] This union integrated Poor's expertise in transportation and utility analysis with Standard's broader industrial statistics, enabling comprehensive coverage of corporate securities across sectors. The merged entity immediately enhanced its offerings by combining manual-based evaluations with quantitative indexing, addressing the growing demand for standardized financial intelligence amid post-Depression economic recovery and World War II financing needs.[3] [9] In the years following formation, Standard & Poor's expanded rapidly by diversifying its publications and analytical tools. It built on pre-merger index efforts—such as Standard's 1923 composite stock indexes tracking 233 companies across 26 industries—to develop more robust equity benchmarks, culminating in the launch of the S&P 500 on March 4, 1957, comprising 500 leading U.S. stocks (425 industrials, 60 utilities, and 15 railroads) that represented approximately 90% of market capitalization.[11] [3] This index was pioneering as the first computer-generated one, utilizing electronic punch-card systems for real-time calculation, which improved accuracy and accessibility for institutional investors. Concurrently, the company broadened its credit ratings to encompass a wider array of bonds and preferred stocks, issuing detailed reports that emphasized empirical balance sheet analysis over speculative narratives, while expanding statistical services to include daily stock price compilations and sector-specific forecasts. By the mid-1950s, these innovations had positioned Standard & Poor's as a key provider of trusted data, supporting portfolio management and regulatory compliance in an era of increasing capital market complexity.[10] [3]Merger with McGraw-Hill and Mid-20th Century Growth
In 1966, The McGraw-Hill Companies acquired Standard & Poor's Corporation, integrating its established credit rating and financial analysis operations into McGraw-Hill's portfolio and marking the publisher's entry into financial services.[3][12] This transaction provided Standard & Poor's with enhanced financial resources and distribution channels, building on its prior independence under owner Paul Talbot Babson and enabling broader dissemination of its bond ratings, stock analyses, and indices like the S&P 500, which had launched in 1957.[10][13] The merger facilitated immediate scale advantages, as McGraw-Hill's publishing infrastructure supported the expansion of Standard & Poor's data products and research services amid rising demand for standardized credit assessments in the post-World War II economic boom.[3] By leveraging McGraw-Hill's operational stability, Standard & Poor's extended its reach into institutional investor markets, contributing to revenue growth through diversified offerings such as corporate bond evaluations and economic forecasting.[14] This integration positioned the combined entity to capitalize on the increasing complexity of capital markets in the 1960s, with Standard & Poor's ratings gaining prominence as tools for risk assessment in municipal and corporate debt issuances.[12] During the mid-20th century, particularly the 1960s and into the 1970s, the financial services arm under McGraw-Hill experienced sustained growth, driven by acquisitions and organic development that amplified Standard & Poor's analytical capabilities.[13] McGraw-Hill's aggressive expansion strategy included complementary purchases, enhancing data aggregation and global information delivery, which bolstered Standard & Poor's role in financial markets despite economic volatility like the 1973-1975 recession.[12] By the late 1970s, the division's emphasis on forward-looking credit opinions had solidified its market leadership, setting the stage for further diversification while maintaining focus on empirical bond and equity evaluations.[3]Late 20th Century Diversification and Challenges
During the 1980s, McGraw-Hill, the parent company of Standard & Poor's, pursued diversification within its financial services operations by acquiring multiple businesses to strengthen data and analytical capabilities. In 1986, the firm completed acquisitions of 14 entities spanning financial services, education, health, and transportation information sectors, which bolstered Standard & Poor's position in financial information dissemination amid rising demand for credit assessments driven by leveraged buyouts and high-yield bond issuance.[15] [16] This expansion aligned with broader industry trends, as the volume of corporate debt requiring ratings surged, with junk bonds—rated BB or lower by Standard & Poor's—emerging as a key financing tool from the late 1970s onward.[16] Standard & Poor's further diversified by enhancing its index and data products to meet evolving investor needs. The core ratings business grew alongside structured finance and international debt markets, while index offerings expanded to include benchmarks for varying market capitalizations, supporting the proliferation of index-linked investment vehicles.[3] However, these initiatives faced operational hurdles, including difficulties in electronic data transmission for financial services reported in 1988, which disrupted service reliability.[17] The period also brought significant challenges, exemplified by the discontinuation of online ventures like McGraw-Hill News and Standard & Poor's News in early 1990 due to underperformance.[18] Certain acquisitions incurred substantial write-offs, underscoring the financial risks of rapid diversification amid economic volatility, such as the October 1987 stock market crash that caused a 20.5% single-day drop in the Dow Jones Industrial Average and corresponding declines in S&P-tracked indices. [19] Credit rating agencies like Standard & Poor's navigated increased scrutiny during the savings and loan crisis of the 1980s, where poor loan quality and fraud contributed to widespread institutional failures, indirectly pressuring rating methodologies for commercial real estate and other assets.[20] Despite these setbacks, the financial division's steady growth in the early 1990s reflected resilience, fueled by broader information format innovations.[18]Spin-Offs, Rebranding, and 21st Century Transformation
In 2013, The McGraw-Hill Companies separated its education publishing operations into a standalone entity, McGraw-Hill Education, through a tax-free spin-off to shareholders completed on May 4 of that year; this divestiture, valued at approximately $2.5 billion in distributed shares, enabled the remaining business to concentrate on financial information services including credit ratings, indices, and market data. Following the transaction, shareholders approved renaming the core operations McGraw-Hill Financial Inc. on May 1, 2013, to better reflect its emphasis on capital markets analytics and benchmarking rather than diversified publishing.[21] This restructuring marked a pivotal shift in the early 21st century, as McGraw-Hill Financial streamlined operations by divesting non-core assets and investing in data-driven financial tools, amid growing demand for transparent market intelligence post the 2008 financial crisis; revenue from ratings and indices grew significantly, with the company reporting $4.9 billion in total revenue for 2015, up from prior diversified figures.[22] On February 2, 2016, McGraw-Hill Financial announced plans to rebrand as S&P Global Inc., highlighting the prominence of its Standard & Poor's division—which traces to 1860 origins in rail security analysis—and aiming to unify brands under a global financial data identity, free from legacy education associations. Shareholders ratified the change on April 27, 2016, with the NYSE ticker shifting from MHFI to SPGI effective May 2; the rebranding extended to subsidiaries, such as merging S&P Capital IQ and SNL Financial into S&P Global Market Intelligence on February 8, 2016, to consolidate analytics platforms.[22][23] The 2016 transformation positioned S&P Global as a specialized provider of ratings, benchmarks, and commodity insights, with strategic emphasis on digital integration and acquisitions to enhance data capabilities; for instance, post-rebranding revenue from information services rose, supporting a market capitalization exceeding $30 billion by 2017.[22] Continuing this focus, on April 29, 2025, S&P Global disclosed intentions to spin off its Mobility segment—encompassing automotive data services like CARFAX—into an independent public company targeted for completion in 2026, aiming to unlock value from specialized mobility intelligence while sharpening the parent firm's emphasis on core financial and energy markets; the unit generated about $1.4 billion in 2024 revenue, representing roughly 10% of group totals.[24] This move aligns with ongoing portfolio optimization, prioritizing high-growth areas like AI-enhanced analytics over tangential sectors.[25]Corporate Organization and Operations
S&P Global Ratings
S&P Global Ratings is a division of S&P Global specializing in credit ratings, research, and analytics that assess the creditworthiness of issuers, including corporations, sovereigns, and financial institutions, as well as their debt instruments such as bonds and structured finance products.[26] These ratings consist of forward-looking opinions on the likelihood of timely and full repayment of debt obligations, expressed on a relative scale from highest quality (e.g., AAA) to default-prone (e.g., D).[27] The division employs approximately 1,500 credit analysts and maintains over 1 million outstanding ratings covering debt issuances totaling around $46 trillion across more than 128 countries.[28][26] The origins of S&P Global Ratings trace to 1860, when Henry Varnum Poor published "History of Railroads and Canals in the United States," providing early financial analysis of infrastructure.[9] Formal credit ratings began in 1916, focusing initially on railroad bonds, under Poor's Publishing.[9] Standard Statistics Company, founded in 1906, merged with Poor's in 1941 to form Standard & Poor's, which expanded ratings to utilities and industrials.[9] McGraw-Hill acquired Standard & Poor's in 1966, integrating it into its operations until the 2020 rebranding to S&P Global Ratings following corporate restructuring.[9] As a Nationally Recognized Statistical Rating Organization (NRSRO) registered with the U.S. Securities and Exchange Commission since 1975, S&P Global Ratings' assessments influence regulatory capital requirements, investment decisions, and market pricing, though ratings are explicitly not investment recommendations or guarantees of performance.[29][30] The rating process involves an eight-step analyst committee evaluation incorporating quantitative financial metrics, qualitative business risks, industry competition, and macroeconomic factors, calibrated against stress scenarios and published criteria for transparency.[27] Ratings undergo continuous surveillance with periodic reviews triggered by material events, and performance is measured via default and transition studies to validate accuracy over time.[27] While S&P Global Ratings emphasizes independent analysis to support market transparency and informed risk assessment, the issuer-pays model—where rated entities compensate the agency—has drawn scrutiny for potential incentives to inflate ratings to secure business, as evidenced in historical episodes like the overrating of subprime mortgage-backed securities prior to the 2008 financial crisis.[26] Post-crisis reforms under the Dodd-Frank Act reduced regulatory reliance on NRSRO ratings and imposed stricter oversight, prompting methodological enhancements such as greater emphasis on liquidity risks and recovery rates.[27] Empirical studies of rating accuracy show mixed results, with stronger predictive power for investment-grade issues but challenges in high-yield and sovereign contexts amid economic shocks.[27]S&P Global Market Intelligence
S&P Global Market Intelligence is a division of S&P Global that delivers financial data, analytics, research, and workflow tools to institutional investors, corporations, and financial professionals, enabling performance tracking, opportunity identification, and informed decision-making across public and private markets.[31][32] It integrates multi-asset-class datasets with purpose-built platforms, emphasizing 24/7 accessibility and customization to address client-specific needs in areas such as valuation, risk assessment, and market surveillance.[31][33] The division originated from S&P Capital IQ, which McGraw-Hill acquired in 2004 for approximately $200 million to bolster its financial data offerings.[34] In 2015, S&P Global (then McGraw Hill Financial) purchased SNL Financial for $2.2 billion, a provider of sector-specific intelligence on banking, energy, and media.[34][35] These entities merged in 2016 to create S&P Global Market Intelligence, unifying Capital IQ's company-level financials with SNL's industry-focused datasets.[36][35] Subsequent growth included the 2022 merger with IHS Markit, which added advanced analytics capabilities, and the 2024 acquisition of Visible Alpha to integrate consensus estimates and sell-side research directly into Capital IQ workflows.[37][38] Core products encompass S&P Capital IQ Pro, a flagship desktop and web platform offering detailed financial statements, peer comparisons, M&A deal data, and screening tools for over 100,000 global companies dating back to 1997 internationally and 1999 for North America.[39][40] Complementary offerings include Compustat for historical fundamentals, SNL datasets for financial institutions and energy sectors, and specialized solutions for private markets, supply chain management, and sustainability analytics.[41][42] These tools support functions like equity research, credit analysis, and compliance monitoring, with recent expansions targeting private equity and credit through the October 2025 agreement to acquire With Intelligence for $1.8 billion.[43][44] As of 2024, the Market Intelligence segment accounted for about 34% of S&P Global's total revenue, driven by subscription-based desktop products and acquisition synergies, though growth has been moderated by divestitures and market volatility in certain desktop lines.[45][46] It employs thousands of analysts and data specialists globally, focusing on high-quality, verifiable inputs to maintain credibility amid competitive pressures from fintech disruptors.[47] The division's emphasis on integrated intelligence has positioned it as a key enabler for alpha generation and risk mitigation, particularly in evolving areas like energy transition and geopolitical risk assessment.[48][49]S&P Dow Jones Indices
S&P Dow Jones Indices (S&P DJI) is the index business unit of S&P Global, specializing in the development, maintenance, and licensing of financial benchmarks across equity, fixed income, commodities, and multi-asset classes. It calculates and publishes over 830,000 indices as of 2012, with the portfolio having expanded since, serving as foundational references for exchange-traded funds (ETFs), mutual funds, derivatives, and portfolio benchmarking.[50] The division emphasizes methodological transparency, independence from S&P Global's ratings operations, and adherence to International Organization of Securities Commissions (IOSCO) principles for financial benchmarks, undergoing annual reviews to ensure reliability.[51] The origins trace to the Dow Jones Industrial Average (DJIA), created by Charles Dow and first calculated on May 26, 1896, as a price-weighted gauge of 12 industrial stocks, evolving to track 30 prominent U.S. companies.[52] Standard & Poor's introduced the S&P 500 on February 27, 1957, as a market-capitalization-weighted index of 500 leading U.S. firms, representing approximately 80% of U.S. equity market capitalization.[52] S&P DJI as a unified entity launched on July 2, 2012, via a joint venture combining S&P Indices (from McGraw-Hill, now S&P Global) and Dow Jones Indexes, with CME Group involved in the initial ownership structure; S&P Global holds majority control.[50] This integration consolidated expertise, enabling global index families like the S&P Global BMI (covering over 13,000 securities across 50 developed and emerging markets) and sector-specific benchmarks.[51] A landmark in index application occurred in 1976 with the debut of the first index mutual fund tracking the S&P 500, catalyzing the growth of passive investing; today, over one-third of index mutual funds and more than one-quarter of ETFs worldwide are linked to S&P DJI benchmarks.[51] As of year-end 2024, $20 trillion in assets were indexed or benchmarked solely to the S&P 500, underscoring its dominance in U.S. large-cap equity tracking, with passive strategies comprising a significant portion of total assets.[53] Operations include index construction using rules-based methodologies (e.g., float-adjusted market cap for equities), real-time data dissemination, and custom solutions via the SPICE platform for tailored analytics, ESG integration, and back-testing.[51] S&P DJI collaborates with global exchanges for localized indices while maintaining methodological consistency, supporting institutional investors, asset managers, and regulators in risk assessment and performance measurement.[54]S&P Global Commodity Insights
S&P Global Commodity Insights is a business unit of S&P Global that provides independent information, benchmark prices, analytics, and insights for global energy and commodities markets.[55] Formed in 2022 through the integration of S&P Global Platts and IHS Markit Energy & Natural Resources following S&P Global's acquisition of IHS Markit, it combines longstanding price assessment methodologies with advanced data and forecasting tools to support trading, risk management, and strategic decisions.[56][55] The division traces its origins to Platts, established in 1909 as a publisher of shipping and commodity market news, which evolved into a key assessor of physical commodity prices.[57] Acquired by McGraw-Hill Companies (predecessor to S&P Global) in the mid-20th century, Platts expanded its benchmarks, such as Dated Brent for North Sea crude oil in 1988 and the Iron Ore Index (IODEX) for seaborne iron ore pricing.[57] The 2022 merger enhanced capabilities by incorporating IHS Markit's downstream energy data, refining, and supply chain analytics, enabling broader coverage of volatile markets influenced by geopolitical events and energy transitions.[55] Core offerings include Platts benchmark assessments, which are derived from daily market surveys of physical traders and serve as reference prices for over 1,000 contracts worldwide, including JKM for liquefied natural gas (LNG) and assessments for biofuels and clean energy commodities.[55] These are delivered via platforms like Platts Connect, providing real-time data feeds, news, and analytics tools for over 15,000 clients across 150 countries.[55] Additional services encompass risk management software, AI-driven forecasting, consulting on energy transitions, and sector-specific insights into crude oil, natural gas, power, metals, agriculture, fertilizers, and petrochemicals.[55] In commodity markets, S&P Global Commodity Insights plays a pivotal role in establishing price transparency and liquidity, with its benchmarks underpinning trillions in annual derivatives trading and physical settlements.[58] For instance, Dated Brent influences approximately two-thirds of global oil pricing, while IODEX guides iron ore contracts on exchanges like the Singapore Exchange. The unit's methodologies emphasize verifiable transactions and market participant input, though they have faced scrutiny in regulatory probes, such as the European Commission's 2013 investigation into oil benchmarks, which resulted in enhanced compliance protocols without findings of manipulation. This positions it as a critical infrastructure provider amid rising demand for data on sustainable commodities like biofuels and battery metals.S&P Global Mobility
S&P Global Mobility operates as the automotive intelligence division of S&P Global, delivering data, analytics, forecasts, and advisory services that span the entire automotive lifecycle, from production to aftermarket sales and service.[59] Its solutions draw on proprietary datasets covering vehicle registrations, sales, supply chains, and market trends, serving nearly every major original equipment manufacturer (OEM), 90% of automotive suppliers, and a broad range of dealers and financial institutions.[59] With roots tracing to the 1920s through R.L. Polk & Co.'s initial vehicle registration reports, the division evolved via the 2013 acquisition of Polk (including CARFAX) by IHS Inc., which later became IHS Markit and was acquired by S&P Global in February 2022, integrating these assets into its current structure.[60][61] The division comprises three primary business areas: Used Vehicle Sales & Service, which includes the CARFAX brand for vehicle history reports derived from billions of records across service, police, and DMV sources; Strategy & Product Planning, focused on demand forecasting, pricing intelligence, and market analysis tools like those enhanced by the February 2023 acquisition of Market Scan Information Systems for incentive and pricing data; and Supply Chain & Production, providing production forecasts, parts data, and supplier analytics across over 150 components and 300 vehicle models.[24][62][63] Key brands such as Polk deliver registration and ownership data for market sizing, while automotiveMastermind supports predictive analytics for dealer sales and service optimization.[64] In fiscal year 2024, S&P Global Mobility reported $1.6 billion in revenue, reflecting an 8% year-over-year growth driven by demand for data-driven decision-making amid supply chain disruptions and electrification trends.[24] On April 29, 2025, S&P Global announced its intent to separate the Mobility segment into a standalone public company by 2026, aiming to unlock value through focused growth in automotive technology and data services, with CARFAX CEO Tony Aquila appointed to lead the entity.[24][65] This move follows earlier considerations of divestiture options, including potential full sale, amid strategic reviews of non-core assets.[66]Business Expansion and Restructuring
Major Acquisitions
S&P Global's major acquisitions have focused on enhancing its data analytics, market intelligence, and technology capabilities. In July 2015, McGraw Hill Financial, the predecessor entity to S&P Global, acquired SNL Financial for $2.225 billion in cash, integrating specialized financial data and analytics to strengthen coverage of banking, energy, and real estate sectors, which later formed the core of S&P Global Market Intelligence following the 2016 rebranding.[67]| Date | Acquired Entity | Deal Value | Strategic Focus |
|---|---|---|---|
| March 2018 | Kensho Technologies | $550 million (net of cash, mix of cash and stock) | Artificial intelligence, natural language processing, and advanced data analytics to improve core product capabilities across ratings and indices.[68] |
| December 2019 | 451 Research | Undisclosed | Emerging technology research and advisory, expanding intelligence on high-growth sectors like cloud, data centers, and digital infrastructure for S&P Global Market Intelligence.[69] |
| November 2020 (agreed; completed February 2022) | IHS Markit | $44 billion (all-stock) | Broad data, analytics, and decision-support tools across commodities, mobility, and financial markets, creating a leading provider of essential intelligence and enabling cross-segment synergies.[70] [71] |
| October 2025 (agreed; expected close 2025 or early 2026) | With Intelligence | $1.8 billion | Private markets data and analytics, including private equity, credit, and infrastructure, to establish leadership in alternative investments and complement existing offerings in private capital.[43] [72] |