S&P Global (SPGI) The Stifel 2024 Cross Sector Insight Conference summary

Ratings business outlook

• Raised guidance for billed issuance to 6%-10% and earnings to 7%-9% due to strong Q1 and Q2 trends.

• April saw 75% growth in billed issuance; May also showed double-digit market issuance growth.

• Second half of the year expected to be more volatile due to tough comps, interest rate changes, and geopolitical risks.

• Long-term issuance pipeline is up 11% for 2025-2029, driven by economic growth and refinancing needs.

• Corporate debt in markets has grown steadily at 4% annually over 80 years, with US capital markets dominating corporate financing.

Private credit and market intelligence trends

• Private credit filled gaps in 2022 as rates rose, moving into larger cap companies.

• S&P supports private credit with ratings, analytics, and portfolio management tools like iLevel.

• Sales cycles lengthened since late 2022, especially among sell-side institutions, but this is now built into planning.

• Diversified client base in Market Intelligence offsets pressure in desktop business; guidance reflects these trends.

AI strategy and proprietary data

• Early AI investment began with Kensho; now serves as the AI center of excellence and data layer.

• Shifted to generative AI, building internal tools like Spark Assist for model management and data security.

• Proprietary data, especially on energy transition and sustainability, is being unified and leveraged across divisions.

• Data is seen as the key differentiator as AI models become commoditized.