S&P Global’s Diversified Businesses Help Offset Ratings Weakness

S&P Global reported a 6% decline in adjusted fourth-quarter revenue with ratings revenue declining 29% as bond issuance dried up. S&P Global’s nonratings business grew 4%. Overall, there was little in the firm’s fourth-quarter earnings release that would alter our long-term view of the firm, and we will maintain our fair value estimate of $370. S&P Global has a variety of moaty businesses, and we expect the firm to have meaningful pricing power across its businesses. However, S&P Global’s wide moat is not a secret to the market and as such we regard shares as being fairly valued.