SPGI - Earnings call transcript Q3 2018

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Operator

Good morning and welcome to S&P Global’s Third Quarter 2018 Earnings Conference Call. I’d like to inform you that this call is being recorded for broadcast. All participants are in a listen-only mode.

We will open the conference to questions and answers after the presentation, and instructions will follow at that time. To access the webcast and slides, go to investor.spglobal.com. Instructions]. [Operator like now introduce to would Mr. I Senior Global. Merritt, Vice President S&P for Relations Investor of Chip may you Sir, begin.

Chip Merritt

call President and quarter our for Executive morning, call. morning’s we S&P morning Vice XXXX Global’s Doug Good thanks Financial news earnings results. Presenting for President and issued on Officer. Ewout a CEO; third and and joining Chief us are Steenbergen, Peterson, This this with release

earnings In be today’s of the between release measures release calculated to financial and the the downloaded perspective If at conference from financial corporation’s release corporation’s need the the can investor.spglobal.com. information is that comparable the adjusted with business a copy during investors provided accordance The same you contained the reconcile non-GAAP performance operating providing to of exhibits comparisons financial periods, measures earnings difference and GAAP. meaningful U.S. This schedules, and and view we’re the in enable they call, make management. between to as information.

results Securities are actual of to events. Before cautionary descriptions on give that who the to differ Regulation. Reform subject legislation and economic a ownership expects from estimates, impact me investor Except S&P remarks Private has teleconference projections, the conditions, call should to Litigation we XX-Ks, Global of direct of contain are cause your filed and matters periodic XX-Qs, X% XXXX, European of company. obtain the of current like forward-looking Any better about provide in this I to contained this cautionary may discussed materially our based forward-looking anticipated with such and Form meaning future statements attention certain or the expectations statements on to would Commission. and historical reports we information, current statements. statements for uncertainties Securities call these the potentially forward-looking more regard, in also of the understand other to Exchange within and risks to may In statements. investor results to and I the U.S. listeners Act including need and Any begin, in the or

We’re aware have with call. on representatives we us the do media some that

call for that ask this questions we is XXX-XXX-XXXX. the would to turn at and be the investors Doug? this directed call Doug Feuchtwanger However, to intended time, Jason would over like media from At to Peterson. I

Doug Peterson

benefit was Chip. in issuance overcome to exceptional a Good quarter, The able margin and and bond of improvement welcome were revenue of earnings we you, Thank global decline diverse evident to delivered businesses EPS morning portfolio today’s call. this our as gain. and growth,

believe long-term continue to that fundamental namely and issuance global solid debt remain GDP the maturity drivers pipeline. of growth We strong, a

to ratings issuance on issuance company U.S. rates, enough from However, issuance trade in delivered quarters we be uncertainty that in revenue. the great decline cause these combined months or revenue. with there despite and have market a when this will X% from happened Yet The tax a concerns quarter. X% emerging weakens decline It results. economic in cautioned ratings decline always negative impact resulted rising global and negotiations, in financial headwinds, a reform, Brexit

while is to emphasize the important and projects. most company in automation line the installing to was operating the from processes across the a efforts significant margin. profit quarter lean continued improvement highlight adjusted me, the This top For growth, testament

is this the discipline increase every financial of working level engineers, the acumen paying not just and raise company effort software of across off. We’re and to employee, the technology

and In Dow addition, Market XX% Intelligence Jones Indices each growth. S&P achieved revenue

few months of XX% adjusted flow XX%. reform, free $X.X of tax billion certain of year-to-date, ASR first and an The began diluted growth will $X.XX was ASR with margin last rate – completed growth, new we lower we’re revenue than our we combines $XXX year. cash items, and next to the capital over March EPS million excluding in nine year. of billion philosophy, expect while improvement share return that increase be a that of billion and generate Our generated early XXXX completed return Consistent U.S. February days We $X through from initiating to next over in dividends. in the no later repurchases

years Moody’s We’re place particularly is pleased as that generation. the transformation a our flow past recognizing portfolio that company businesses, credit increased the cash improved of taking profitability both few upgraded Fitch in and the over and rating,

and cover We ESG invested $XX keep activity you and I’ll technology-related continue a to abreast of that in in with our million space companies in start-up moment.

financial adjusted third Ratings gains, increased diluted X%, Despite point decline a profit a from rate in combined to adjusted profit and quarter operating XX%. XX.X%, U.S. led These tax ever. This XX%. adjusted EPS tax total Turning to growth generated increased operating to our basis the margin revenue, with in the best XXX of results. revenue reform, quarter lower improvement

tax company, has U.S. positive of it for impact on the has, a the reform been expected, we as While issuance. been drag

decline X%, extends $XXX cash year. the U.S., year. companies is made except the by fourth XX%, Chinese XX in debt these companies, the issuance Coke CMBS. second this grade In alone Asia, bond not those far trend up XX category, fact, debt of only decreased Global it results. our largest and roughly account is and every companies. companies declined quarter, gains XX%, currently this XX%, Among XX% Europe, finance year. increased In U.S. in decreased in don’t much corporate XX%, end decreased issuance Since If local activity investment of balance high billion yield of the issuer last of U.S. the in structured the XX%, beyond in so of XXXX as market. quarter. They we this And weakness declined X%. finance which XX% CLOs. issued overseas just is CMBS, million ABS these declines decline the in for we course, XX issuance with finance exceeded issued will, is with in $XXX issuance as public absence of declined as increased an persists corporate the will grade expect In high yield investment rate, strength to In offset that in this declined of and issuance this increased with meaningful XX% structured strength X% structured issuance the this as unchanged

as into that I quarter to quarter TheStreet think perspective, third on that it’s misperception could be put was important third abysmal. issuance issuance there

the you XXXX. of issuance chart, in XXXX, level remains most higher on As and see this than can of quarters XXXX the high,

vast chart of also a to of healthy charts debt the a important debt-financed be refinanced. since debt shared year This We a U.S. the of steady increase material interesting M&A I corporate of opportunistic. is that level have you So depicts it’s that majority still that the to investors general have XXXX that means needs not is think offering. investment-grade while two XXXX, third refinancing. next comfortable decline of the versus more issuance. remind blockbuster for and note It’s in issued of routine, stream That you purposes issuance quarter a with become it’s that but majority the we to the ago, generally as

look tax high-yield has see over associated tailed you and opportunistic increased LBOs, a XXXX, frame, I same of up If that, issuance. ago. In dividends make buybacks again, take issuance with U.S. once we the a issuance time at M&A, minority and can reform This the to cash moment XXXX addition, but is issuance discussed off. that buybacks for in on since and of due the likely dividends repatriation U.S. impact

we can interest has have You forecast. level have the and high-yield also is forecast floating issuance its see company gained that the noted leverage loans rising XXXX generally issuance prefer that environment. high-yield share The because its bond versus In initiated rate a high updated in past, bonds of debt declining. XXXX investors

This international both company For tax X% XXXX, public the July is excluding and at issuance, to due now the finance, be slightly The finance, primarily forecast to than to decrease. with public the U.S. greatest X%. U.S. reform. industrials decline lower expects continue areas U.S. decrease

X% continuing. rate the is finance, a to global For the appetite financing. uncertainty international of economic floating is less driver economic Investor tax expected current debt themes U.S. than and also withdrawal of with LBO XXXX, public in stimulus reform, for excluding increase issuance

years. high-yield high-yield quarter And As yield with in bond source its bond. high- loans past owning has leveraged This LBOs from backing rating revenue markedly recent years. over loan level at is over expensive level increased although A over been the Thomson the years, in loan lowest the see, financed several the is but million, leveraged a revenue of moderated declining, quarterly of few can issuance its the at in market. This of past Blackstone has of investment bank U.S. $X.X billion billion two growth was $X.X has you of example been third somewhat Financing $XX of and Reuters.

Structured for the opportunistic that past in been a large of revenue other of dynamics floundered. catalyst this. issuers, M&A recent previous impact the are providing half. During volume sidelined were were the LBO a a issuance a third has quarters, equity as higher as chart, Private however, and even supply, growth amid on spreads. quantity undeterred, firms seen source year There quarter, largely two

healthy, and supported as is low This the is consumer light to economy. With borrowing, in The strong both the level the and continues depicted credit loans of positive blue bars. growth. The GDP a by the which for standards is first thing growth good is unemployment in outstanding grow. spending credit is part

utilization. worth of it this the service an are the measure securitization whereas, personal securitized. is that credit overall fact, that In is percentage blue from a standpoint, to above ratio outstanding lines. XX% decline in payments This the household a below the that depicted call just debt amount income before XX%, is remains loans crisis. Offsetting was noting it’s dark of we in This

The XX%. over first years, quarter XX XX.X% from the in increase second marked to

their our part and during We invest purchased integral has and in CME become ESG XX% in We stake the effort. new products continue quarter. to an from unique Trucost of content technology Trucost. develop

new XXXX estimate associated made full year additional X, that of continue revenue than this in $X We is from build million, our to million million Dow $XX transferred capability. the and We addition, respectively. be as Market $X operating loss In we a October to Trucost have Indices ESG S&P Trucost out We we with effective and more fit, Intelligence. better Jones technology. think investments will

The they digital an information feedstock data. sourced marketplace. transforming track first Xpansiv, and company securely the produced its is energy shipped way in directly in vital early-stage influence energy The to into production value was an investment call what will

was and business issues Rotterdam imports for legislative intended and daily of S&P in helps These by that reduce second for buyers risk-return basis in of Indices the The carbon set at-place maintaining exposure delivered wave X.X exports FiscalNote, that for investment years the benchmark a launched ESG their a the over has way, innovator are crude, an but and assessments manage around to the them investment selected international at to address on the affect GPIF, price the government opportunities rise new benchmarks. West created designed intersection profile organizations government. of Platts XX while are policy U.S. and last strategy. systematic their It of state, Augusta. Dow companies assessments through high-carbon S&P pension a into a efficient The pension launched indices U.S. Japan, diverse has day in only fund investment million a Texas Ford sellers to The technology federal Jones Eagle over as and X.X Europe. the similar U.S. Midland Intermediate Global fund to indices not world’s The also largest barrels two in of carbon-efficient most. world.

milestone celebrated financial success turn surpassed to This inflows in growth $X with trillion ETF a contributor important asset and remarkable of billion in CFO, our and, Steenbergen, we over provide Ewout? truly appreciation, our first And to the surpassed Ewout into now a Dow additional the trillion. $X.X we indices time. like is for and insights of as trillion an AUM now, Indices. quarter, $X.XX This S&P Through another XXXX our combination to performance. important market call achievement $XXX the I’d and XXXX, who’ll Jones associated

Ewout Steenbergen

Thank morning call. and you, of the Doug, to good all on you

operating items. of adjusted and growth, revenue I gains, the couple like discussed Doug to touch a expansion EPS would margin other on profit While

reform. in in XX% on and a adjusted our reduction reduction of primarily basis in fees. IT professional corporate tax a included which loss. in adjusted rate, primarily due there And effective second, spend reduction a less was point real New the U.S. result reduction we excess progress, First, a cost the was efficiency tax estate spending York, This to unallocated had XXX in

of continue than the benefits, quarter realize were XXXX. While tax lower significantly third to we stock-based compensation they

this year level In EPS fact, in because that exercises recorded of line from stock $X.XX third quarter. the extraordinary item more option there quarter an of was last

$X.XX Ratings $X.XX business $XX positive a million full expect Changes exchange a We the modest profit EPS to adjusted on impact a in negative $X.XX in this share the foreign benefit rates year. and or on of impact EPS. revenue company, positive operating a for had for

We We These provisional positively and million $XX amortization. quarter. we the reported $XX two and million York and million reduced results. fourth an associated associated Australian rupee, Jersey. XXXX, with Our in profit weakening charge Princeton, expenses. that tax million space approximately after-tax generate by retention-related number that with excluding peso savings. of $XX Intelligence. and we in adjustments our reform first We recorded adjusted impacted the expenses were restructuring $XX in charge operating million benefit are should quarter annual of New non-GAAP an were we incurred a in corporate from deal-related dollar. Kensho We Indian impairment this the lease exiting $X U.S. of to There $X New tax million Argentine in Market in had resulted this in items the took And a

in quarter, Indices. and Dow Intelligence growth This Jones recorded Market great both we revenue S&P

business improvement we substantial addition, In operating delivered in profit adjusted margin every segment.

growth While story. of that expansion, is driver fundamental part is just of the revenue a margin

have of and a continue impact financial that has and will We rigor margins. on to have implemented major level a discipline

have – space and company. in several projects office profit we technology we adjusted the margin initiatives, While the over continue improving company’s that operating the a multitude execute to years, made have strides restructurings, great profitability the of lean optimizations to past while continue on advance of

well quarter decrease starting Nevertheless, in a expense have accruals Ratings point in profit. with Now quarter results, decline segment and operating we perspective. due issuance revenue increase the lower resulted would revenue decreased debt activity in that dollars. to useful The we I year. loan recorded Doug to a with that Transaction we segment due royalties through XX.X%. actions. loan This reductions and in as services growth U.S. a activity decline transaction when comparison evaluation compensation were contributed lower in This partially this issuance quarterly that profit challenging operating decline be X% last to and Ratings rating revenue decline. adjusted primarily XXX attrition as by lower revenue quarter reported decline as the a a as incentive to in the it first rating transaction put Intelligence, reported X% to the segment the well Loan as since let’s bank is expenses, for four trailing XX% surveillance growth in restructuring well The in improvement XX% into successful of third as issuer from quarter’s first to resulting margin turn revenue to to headcount thought adjusted increased in CRISIL X% discussed in intersegment a Market in adjusted revenue. basis associated Ratings. the programs fees reductions, XXXX of offset efforts reported frequent reported

because see a is source like. the that revenue can of very revenue. is is subscription this of majority This the You steady

as some a U.S. This and Service to mainly markets. primarily by slide components, corporate, decline at ebb volatility some end contributor there’s revenue with was The in its M&A result flow largest revenue activity. However, of Ratings Rating Ratings as of the the Evaluation issuer that frequent strong are governments depicts delivered and in issuance reform slightly increase declined Europe decreased programs. services weakness was in particularly with revenue part discussed XX% a Doug that not tax Structured quarter XX%. companies earlier. in Financial

in contributed point. excluding intersegment a category, operating RatingsXpress XX% providing XXX feeds continue the and was with grew high expenses quarter CRISIL’s growth, organic contract has operating points flat, partially X%. be be to revenue. decline XX% ESG figure CRISIL of and adjusted in Data Solutions new XX% revenue business. in increased the Risk included better increase increased grew basis Market and Panjiva XX%. suited will Services Intelligence other the underway, data quarter as the of feeds the a the revenue, improvement benefit from X%, Intelligence. adjusted believe integrating with segment revenue offset the a the X% fourth with from realized of Management into trailing data basis activity This category lot for of we to we Beginning adjusted in Intelligence Intelligence, by expansion the points profit strong Trucost quarter, business it have While greatest business tiny RateWatch, increase an XX.X% up in four XXX with increasing dollar-denominated profit level a of associated an growth, to Market to we Market margin segment again, to the royalties and benefiting largest Desktop, expand included once portion and a renewal. here. is Market delivered

Panjiva platform, added and global a activity datasets. to spectrum the allow have feeds trade on will Xpressfeed receive our this customers of content data We to unique

search Intelligence search platform. improved release and capability keywords also significant released The We responses. performance This this initial content, and relevant was introduced. enhancements. to version more generate develop feature step quarter An the was with updated of to continue topic initial Market a beta included Kensho-driven

are contracts agreements. remaining up customers In Capital commercial IQ renewal. We cases, come continue to some desktop for to we multiyear waiting the to work to enterprise-wide convert for

a realize active the addressing of users. increase XX% accounts, which converting accounts, small a to multitude and are labor- now after importantly, desktop intensive, we More is large in

X% XX% to EPS rest Dow operating share This an XX% an The provider the industry U.S. of quarter Dow the for continues Jones Turning the EPS. profit put points, quarter during operating XX% about to and expense adjusted attract XXX margin investment perspective, to trailing XX% delivered increases this garnered adjusted To XXX world. The basis of index as adjusted profit. growth Indices Jones segment four business led a of S&P inflows Indices. of the basis, respectively. segment versus a and market to quarter, global as the XX.X%, revenue on growth, into S&P and XX.X% has segment

that’s was inflows, for the and growth with the receiving outcome custom fees based very asset-linked by driven indices business. quarter XX% data EPS So and during our Strong upon positive industry of revenue a the subscriptions.

primarily funds with increased mutual in increased fees AUM custom revenue mixed increased exchanges. discussed Exchange-traded due indices. at and activity Asset-linked ETFs in due Data growth. and and increased to organic realtime X% we reporting and to linked growth, a subscriptions quarter, our the second the that derivatives to derivatives Trucost catch-up

mentioned have have surpassed we’re at to in EPS year $XXX trillion of Doug A we ago, since trillion, billion market in $XXX were earlier, As $X.X $X.X thrilled seen and appreciation. and inflows billion we AUM.

options and increased And derivatives important fourth S&P now While index XX% activity this average during XX%. $XXX quarter third the quarter, activity a The due high of AUM, from and in delivered certain volume Exchange-traded versus expense a is equity in Services quarters ETF billion to Trading October, Adjusted oil in increase of revenue exchange-traded our very the quarter, offset mixed derivatives marine Trading equity similar ETF were closely traded Platts year futures impact final trading volatility the quarter reducing which market investment steady volume markets. timing starting measure, at options to Revenue cost. Having Services. as X% in the away fuel weaker is business ending, from increased was inflows sulphur first off transition sequentially the reduced third AUM which the year-over-year. declined XX%. and in mainly increased witnessed both quarter. the CME X%. in derivatives subscriptions, strong. improved to accruals the decreased And growth. second tied down is was margin exchange- the in due quarter revenue decline of XXX incentive result the core partially increased funds Global exchange-traded into activity second complex gas X% versus is Global X% by volumes an and Industry turning X% a segments, VIX revenue more to and to products activity. inflows oil prior year.

sulphur launch assessment to We early several may transition. XXXX assist that market the in are marine price positioned in low this

point to segment to figure four adjusted gain operating quarter basis This points since XX.X% Services a contributing to chart increased profit third trailing basis XXXX. The revenue shows margin Trading XXX Global quarterly XX%. in XX quarter

revenue provide while trading Also quarter, as highest since the from to GTS This quarter to chart quarter the Platts business. of constant this underlying third fluctuates, revenue does the was illustrates quarterly volume volatility XXXX. quarter contribution the a

are discussed in and our of and iron off, in the petroleum agriculture outside number X% have launches market, realized revenue product superior citing few the These delivered as LNG, Power further frequently paying and gas, revenue quarter. base. acquisitions petrochemicals past over years. metals growth growth ore, and clearly We and of the each diversifying efforts a the revenue efforts agriculture Platts

Since Now to our continued balance $X in March, build. to our funding balance the cash has ASR billion turning sheet.

well date. taxes. excluding capital certain targeted revenue EBITDA Our Free XX% year-to- adjusted flow, cash improved steady increased to lower growth at growth, leverage range. This times, items, holding is and due to within adjusted our X.X working is

ASR over shares we that few addition, through completed addition new in in repurchasing time final initiate XXbX-X in the million a And since shares, day was program. The have the of million completed we the was ASR every mentioned, the short-term approximately days. Doug as $X when the billion and first next a been received we $XXX September shares received will market, and, XXX,XXX to a in X.X is delivery quarter ASR In initiated. this ASR and

million during with philosophy. in return consistent our dividend the We capital also quarter, paid $XXX

share We in through repurchases $X.XX year. for return expect billion and to dividends full the

Forex to results reflect any slide and This our the turn spot highlighted. our we would rates. previous guidance. market I prior for our of year, depicts guidance year-to-date current have guidance. expectation like changes updated rest XXXX the current figures upon our GAAP with and the to Based Now Guidance

decreased Here, reduction guidance. unallocated we programs. progress better-than-expected to million Corporate reflect range $XXX been of a have million to our on to cost has XXXX $XXX adjusted the

guidance $XXX a expenditures to to capital $X.XX EPS approximately are to is million. of $X.XX, tightened and our Our range we reducing

decreasing we collections. excluding flow, late free $X.X to with cash timing the our due certain items are Finally, to approximately cash billion associated

So in diverse the innovative summary, company third benefit turn of further continued your businesses the financial analytics the solid technology. me our in with let products, content for clearly we exceptional margin-enhancing back projects evident of delivered investments results resilient data, build Chip portfolio over and and as questions. of quarter. enhanced Effort continue call With through unique and technology that, to the for to

Chip Merritt

you, question. first [Operator Operator, now our Ewout. Instructions]. you take Thank

Operator

from Mazari Capital. This question comes Thank Macquarie Hamzah from you.

You may ask your question.

Mario Cortellacci

were Intelligence particularly Mario This segment you. you freed your benefits from talk being capacity with managers contracts? Market XXX-or-so is Cortellacci enterprise-wide up the excess Hamzah. in up, we you’d and actually in could see integration Could about filling that the for Thank tied potential think SNL the relationship

Doug Peterson

Make sure the clear you��re question. on

we’ve got in sales are bunch SNL that is folks the So of premise a tied the integration. up that

Mario Cortellacci

Yes.

just think some there. looking for clarity I

Ewout Steenbergen

is morning. Ewout. Good This

you give perspective on me some this. Let

integration two the we the has Cap behind all, of last over of the years. have IQ first us, and SNL So that organizations happened

but of benefits this as would excess that see come of during the synergies the look if that there have of a should So year, bit you that XXXX, that we is announced speak. synergy at by in course benefits we some of was mostly us behind still year-end you

year-end million synergies. million So as year, rate we of and run year, this last we believe were $XXX at rate by $XX about of run the synergies end

expansion you and of coming that is that So Intelligence. the margin see in, Market in

actually, management in sales are force they new And relationship customers. focused there has is sales been group the Market there on and that is model, the that a focused the is more another force new group last sales where of year investing Intelligence force. transition on more is sales there force, large a with the a of Specifically over on

relationship the customers the as We’re renewal new well customers to management can Market seeing we we’re the in as number attract platform. rates, expanding benefits sales with of our and the Intelligence And force. relationship of in satisfaction that

So results we we’re the up continuing with speak. we benefit see as that showing in program, the and

Mario Cortellacci

revenue And on some helpful. Platts what then can question to so if base? the Maybe the as analytics us that add analytics business. XX% you still longer quick and to That’s of Platts update strategy your a stands of on more us color remind there? or Okay. just size you is the term Could not Platts part sure the at

Doug Peterson

Mario. you, Thank This is Yes. Doug.

I the help I portfolio. an cited you my the us. important very area know we is tell of in strong can analytics and, build different particular, the business. Global a XX% Platts that the use skills been know sources And we’re very and and and we is position across strategy grow One have the that like where from and our getting having in Market an its years business Intelligence of that of couple of drive pursuing. head, Singapore, what the data business percentage S&P the always you As diversify somebody and to technology me in top of the but revenue. off has Platts analytics. is the PIRA, And in all well added into data purchased we’re area. ago of geographically, we to pricing London, in some that one can in data can around here X%, continue in them at of Dubai, that strategy closer it a really had – a and benefits ways. petroleum is adding our We’ve platform we’re of critical couple for to second alternative part global companies, commodity is collaboration It’s way hubs. It’s along out A

Chip Merritt

we mention hear derivative the that And XX% us frequently has you’ll the XX% That oftentimes, to with do trading. particular say figure.

Of course, activity Singapore place that’s that takes that and trading – at ICE iron ore. with

that’s you the referring to XX%. when that’s roughly what we’re – XX%, So referred to

Mario Cortellacci

so you, Thank it. Got much.

Operator

from comes question Our UBS. from next Kramm Alex

your question. may You ask

Alex Kramm

for I you how love think, and, year thing, to refinancing bit your up Hey, more good peer you should next frankly, issuance give in there’s One year highlighted forecast – is forecast. be the this of talking morning And to XXXX saw year – I have particular, wall the I’m would everyone. the could is on and color your beginning the component ourselves, I think guess, a down. little big it Doug, quite – we for you’re a slide where a issuance surprised lot I about refi up in see next yourself, significantly year. from corporate occurring. how But of and the for at

you So little can seems XXXX actually things It flush to out disconnect but some nice like seems missing. a maybe be XXXX, relative the pretty be to should bit.

any color? So

Doug Peterson

Thanks, Alex. good. Yes,

think this XX% we in, of and the that or or First have schedule and of et precisely, We up all, financial X% XX% weak see components. year services also flat. Structured X% global or that, based refinancing kicking as it balance has cetera, be growing a market, growth you given started different around sector, saw the so. U.S. up very finance despite that will a finance X.X% positions, having of the around public couple off sheet, maturity forecast around capital

corporates So down corporate that and leaves so-called the around you with industrials X%.

XX final which, particular, pipeline, the you is of You about we one That’s just decreasing. final that? of half companies And is second are and maturity a you of offshore, year, couple first we’re impact what at six little months, maturity to points. strong and to it’s a or at our doesn’t market top the bit components that sheets for But give think of The have – trillion get mentioned, positions, pipeline, longer this not $X our top We’ve quarters I from on markets. very billion which of You back U.S. group the looking over States. companies, still between Now in maybe get hands they U.S. a onshore down what strong cash year, third it’s whether started in in, XX hands that a at in and which, the balance United and yet. offset with tax carefully. XX on bit the the gone to trying the strong they issuance kicks that? finally whether gone which and quarter. second the you has really was quarter the of And of numbers take look mentioned, just the to take you the the the across have into what that which, third – by just matter. very you have been offshore When little $XX reform. not a cash waiting top to of been overseas least

there to encouraged market we the has We’re that get below XX, been when see top issuance.

whether seeing We they’ve acquisition stock have market back the it’s started with come come strategy, as – strategies, it’s either companies up to repurchases.

But cash this very, factors watch decrease. so we’ll very see balance, of And is closely. we it’s the really one to that starting which

well are as sheet of As impact on being and as does the I debt. anytime some off in decrease, of down pipeline, half about said, still that that the see $XX soon balance XX% do the first number. raising start the And have utilized in those companies strong that as the an billion corporate not we pipeline them year, large that there very the going of but

Alex Kramm

color. you. is non-transaction Ewout. Great in maybe, quickly, then Ratings, right. All maybe very on Thank the side secondly, for this And

last sequentially declining. Are from higher, I would swing still we declines? be I but While that’s at guess, three quarters color has or great. further could that here rate could anything So kind been think been of run any there that be good see, difficult to slowing, the a I else it’s mean,

Ewout Steenbergen

Good we last in it that was was unusual. and pretty positive a direction of three going revenue was element the non-transaction What said that morning, quarters every Alex.

we off. this So new We Rating we year. up. going up had surveillance issuers going first And had the had going of quarter and the second Services in Evaluation

where If Evaluation you the two some is that Rating category third in this is Evaluation not are is can well. Services, And there we Services were M&A down didn’t and course. revenue provided, Rating as particular and up. quarter-by-quarter. is This activities look quarter, and provided, go CRISIL they activity were that up, the of elements at around reporting is other advisory the going element up that go normal

in denomination, revenue CRISIL But dollar was of Indian due rupee at look the to basis, of an the you the If up. weakening CRISIL down. Indian of revenue rupee was

the terms elements. quarter. of two more trend were a last But more So have exception would we non-transaction normal quarters call say, would I the third in the of seen what those were this I during two positive revenue. quarter, the and

Alex Kramm

very right. All you Great. Thank much.

Ewout Steenbergen

Alex. Thanks,

Operator

from from question Stanley. comes Toni next Our Kaplan Morgan

You may ask questions. your

Jeff Goldstein

on Toni. Goldstein Jeff is for This Hi.

million you curious, see I thought rate to in at the million helped which flow of cost we of savings. Investor starting initiatives to $XXX see new so, help if to done? of $XXX that announced run if Day, much would we And are savings majority million that not, the is your when million that $XXX And should achieve $XXX was quarter, through? those You to begin you margins? what how

Ewout Steenbergen

Yes. Thank recognizing you that. for

to was very driver making. the we’re strong course, that are very quarter. pleased behind progress with a We of report we that big the margin able And are expansion for the

reductions, you well. the more that the at half programs. reductions that that was less, expense future to will was, approximately in efficiency coming half of If due should the say structural see the And And we accruals. be there or would expense our as other look incentive we through

point to time. announced ahead our If you this the Investor that slightly you in to of to we of look are Day we where at efficiency I during programs May, progress our in be at believe compared expected what we

complexity real the data We’re reducing and making the of good initiatives rationalization, forth. rationalization, competitive progress with There’s and many making progress on, restructurings, so pleased very with our of so organization center so automation we’re far. going we and sourcing, processes, standardization, on are estate

Jeff Goldstein

given then the hoping revisit issuance, Great. consider across just favorable That most very you mix weaker issuance I quarter what was was the for And to helpful. your product.

if just in maybe be like you and most do Thanks. more So, feel get there’s like ideally more Ratings, what of leverage some products choppiness elsewhere? the to terms or these stable within you leverage see would operating products

Doug Peterson

Yes. Doug. this is Jeff,

different there’s types know, of you As types of issuance, and different get we fees.

complex, high from have size set come on compared not usually the point, U.S., whether your then compared to structured to where areas the if we’re others we market, which they are in typically the revenue to issuer specifically, not they’re finance or are that the of that. certain – have frequent of they’re fees the transaction. transaction involve in because yield But seeing transactions life and they’re We issuers, a and deals U.S. surveillance one-time of higher the through the programs

our in see you’d leverage structured where line. are volumes and high in higher yield typically, finance top So

Jeff Goldstein

lot. a Thanks

Operator

question comes next Barclays. Manav from with from Our – Patnaik

You may ask your question.

Manav Patnaik

these hard Thank you. XXXX, gentlemen. ratings help understand forecast the obviously remain thinks thank if multiyear initial predict putting cycle Doug, you Good view of the are issuance, you out. morning, maybe, just But to you could why I reiterate things. a it’s this for constructive should guys to I guess you things sort especially period sort little are more where this roll and on in help of going on year out. everyone

help a more Just guys positive hoping you why color you there? could provide bit remain on little

Doug Peterson

Yes.

But there it a approximately $XXX We $XXX hit some sheet a global year. years. is to still world, higher restructuring, through market A, M& billion flat the slowed the last continued through and in now schedule managing the U.S. through give know, in activities maturity be largest quarter are growth obviously, up third But that’s almost is out one sheet little Chinese at because the on bit X.X%. up But in about finance maturity It going bit isn’t X%. going Despite $X a date. to global up that This of their XXXX. a you absolutely slightly growth trillion expectations economy China, another already a X% of than to corporate in $X.X over So, over we continues XXXX bit in to grew up-to-date strong and below quarter just range, of a growth. we be looks into the very quarter. that end of very from not couple of was more strong. as global economy bit that’s into the the and you see billion. dropping corporate effectively. our like that the then in But still that XXXX, continue know this dropping The is are XXXX, to massive. and for economy XXXX. XXXX strong trillion, U.S. which then quarter is and see it’s little below goes is the that growth look This second little a is the In down balance of slowdown the growth, me let that balance It’s at, market the into corporations another in little we second the numbers at jumps things to

some So, it out That’s when you look it pipeline already on of sheet gets at forward. that balance the back maturity forward, pull goes Once that’s today, that gets there. and pull the maturity increase years next X% what into schedule. of of time XX% We is the this to – over if you couple about see over out maturity of it’s look that pipeline.

we forecast. et So our we M&A, along into and with take growth, build restructuring, that cetera, with economic that with

of February full a slowdown the we our and strength coming you draft saw, in some we’ll – where but and earnings, fourth as preliminary, come in quarter on this we’ve that’s know update we that first as financial And industrials will public you we balances in give identified short-term for corporates, of forecast, the institution cash with Our end the from. there’s saw, dissect U.S. finance is the get year. with exactly When we this. in full But this. year this an back you year further

Manav Patnaik

a then about can I I’m of X% helpful. question. Okay, the you similar And thinking side business. that’s Ewout, of maybe, if Market Intelligence just the mean, super Desktop I ask this of number, much is growth but decelerating. been guys some industry of contract? just that of enterprise How you headwind. and it the much has to noise is that How shifting

please. Just most some color hoping there, for

Ewout Steenbergen

in are Overall, see encouraged Yes. we we Manav. morning, what Good Market very Intelligence.

growing are share. We market

are We our revenues. Desktop growing

are our growing base. We user

going values contract important single digits, indicator up, the high seeing a future growth. for which We’re very revenue is

that system clicks of usage are And or drive are there going week. call growth. that have users, usage our will per are into will are users more day these in through We more that month, platform things higher overall, is higher that. users of And positive we will higher mobiles, lead help going XXX times users what in multiple more are and workflows. embedded go overall, differentiation active than very so the per we mean per out in to users user our that to up, active future, growth enterprise-wide growth to only, active And embedded we contracts come

And we very are we believe So that markets today. the Desktop a well actually, on in relative encouraged. doing we basis, are,

Manav Patnaik

All Thanks, right. guys.

Ewout Steenbergen

Thank you.

Operator

Silber from next Markets. question Jeff from BMO Capital comes Our

ask may your question. You

Jeff Silber

segment, debt space to I’m much. know don’t margin in so but curious just segment, you already least the Thank issuance at to terms operating specific on will what guidance of of for continue Ratings by continuing you the we we’ve the give quarters? expansion in margin see I seen next declines be few able

Ewout Steenbergen

is said during the margins look our margins, we investor in we see progress years you Ratings fast a given trend expect good up that over On there three that to And four-quarter aspirational bring we’re still able we basis, we’re making is be making in not of that next direction. at to day. targets we yet. going and trailing if a margin are Ratings what have progress, is of Jeff, a level that good direction. those But we high What we definitely would XXs. the that

and at we continue XX.X% a on are trailing We basis on trend. will to four-quarter currently be able that

positive. definitely So

margin revenue you in those in be will point are expansion continuing revenue are very have fact, thinking that continuing period in with positive time. a we We margins. the with margin once you is because at where And higher expansion comes decline back,

future, strong. back the mean your the margins, on in when so that will Ratings, growth only again be value in see giving that not we will revenues economic You’re very

trend. So therefore, a this we think is good

Jeff Silber

quick numbers a just question. then And

embedded guidance what adjusted year, Thanks. the you’ve EPS doing? this repurchasing been In all for your count terms share of is share considering

Ewout Steenbergen

other Yes. of our number would permitted for the information average what give time. would not is Obviously, at indications seen But we that buyback this that you we have have components to think the give activities. of reasons. because published share calculation. in you then, to cannot point And I share give obvious And you be we market know count the the that we

billion $X.XX returned. capital total the of So

We’re year dividends. $XXX is doing this million approximately

done share run And know next days, You you what year-to-date. put that the million of that will into much far so have know we’ll ASR we a few February over the buyback somewhere new place in is how $XXX next year.

calculation. think So probably can get I the that quite components far that you have in all making you

Jeff Silber

enough. Fair right. Thanks All so much.

Operator

Our next Securities. question Dolev comes from Nomura Dan from

You ask may your question.

Dan Dolev

for impact the my – FX I other actually Thanks FX the guys understood net was the If question. Hey. because correctly, this cost. Indian of the the taking positive, a currency, correct, rupee and

Ewout Steenbergen

Correct.

total a rupee rupee, company on in basis, means higher an negative Indian So, we we which Indian cost revenues. exposure have exposure, what than in call a

overall, rupee benefit. therefore, that a And dollar-denominated will a positive base the Indian for is see company’s expense results. the when So is the weakening,

Dan Dolev

Correct.

So I what thought. that’s

at worsened. think trends an look The by It have rupee I the to there’s that me quarter, like increased actually fourth about – depreciated by you the Indian XX%. – year-to-date, EPS if benefit. So, seems

guidance raising end, high the just that So into the perspective, you’re not the just is or reason it put conservatism? to embedding it in

Ewout Steenbergen

to way this have look is the you how So, at the following.

of the exchange we foreign hedge in from So main the to – the where programs FX currencies run movements exchange around effects world. mitigate exposure have we

will foreign a if other those smaller. exchange be that mitigate would movements, be positive way Also it impacts be negative company, should make will the mitigated. there and on And So around. hedge the there program if impact of impact the

Indian weaken, because that is benefit. continuing should are benefit a the other it this directions you’re and move the hedge a But in our mitigated offsetting programs partially. to is right. If rupee overall, be So FX

much a the of effect wouldn’t So be doing that you for if modeling number in into say, company’s a take don’t is account quarter, the overall I fourth reflected again, for are mitigated will because, results. that this too large

Dan Dolev

headcount in last follow-up is you in the understand. then a very provided my across assessment kind I And quarter, you. on detailed I XQ, believe, of headcount. Thank the segments.

X% benefit sense of, of Ratings – in Can down, say, maybe without not was the cutting give from – you’re And Ratings. Thank much how it product? you. to that a ensure I margin know X%, how us headcounts. is you think you you’re – hurting don’t coming like, a reducing in I maybe people like, if do

Doug Peterson

efficiency look basis. fair provide not also then It’s say Yes. do at annual but an a in in we the But on partially therefore, efficiency exactly in Ratings, due the improvement basis, numbers, If we programs expense to and, XX-XX the on from accruals benefits putting We the are are to corporate, and be update headcount. before, the an versus would on probably said to I all in impact will know we so also And from say would that programs, incentive approximately don’t the you efficiency and segments other place lower headcount planning programs. at impact year-end. technology I quarterly allocation. that

We’re, and in of that course, monitoring important. very we are closely that reinvesting is business, also the very

a showed You overall initiatives a reducing investments there the may from during business-as-usual spend and the that Investor overall, technology we’re was very shift innovation slide we recall and the slightly in significant you new towards technology. spend technology, but in where Day, in

continuously So elements. we’re as to the And of business in trying we’re all those looking well. at reinvest

in line are our office to do benefits efficiency areas nothing that, there and we other So in to course, clear in elements leases, the But have a reinvesting. are through and reductions, part certain like a bottom of efficiency with the expense flow are program headcount. part, of space,

provides So of related color. in programs additional I as areas are those well. hope are not headcount there’s lot and some also other efficiency that a that

Dan Dolev

Thank very Good, I much. Doug. you it. appreciate

Operator

Our Peter Jaffray. from comes next Piper from Appert question

You may ask your question.

Peter Appert

Good morning. Thanks.

margin the impressive current pretty Doug, for several performance years obviously, been quarter. and, the the has certainly, in So, last

where segment opportunity improvement So margin maybe on in the basis, wondering for a you the portfolio. biggest remaining see I’m

Doug Peterson

commercial gaps Well, let’s our – get opportunities as fill. customers, where one new think to Across of through in growth, need that say through have our market on to expanding see sell out to is to have you’ve products, heard they loud biggest there or to listen the a where portfolio, ideas out drive we they to activities, the before, me continuing little bit. margin to

the I’m to out so the taken with encouraged being what businesses an our approach company, And need. very that have to they understand across all on commercial customers aggressive

us, in indices. all the products and the GPIF with So think developing generally if the line new Indices one I the growth, ESG their now gives top Platts continued products, that the we developing businesses with about obviously, speaking, markets do to like analytical with new growth that with ability highlighted

at And some hard it point, be margin so this of is we’re the we Indices, more have. where expand I margin can that one of areas the on comes you already margin kind how don’t going to for know much expansion. to pushing when Obviously, expansion,

Day. in that our that in over potentially, But Investor outlined outlined of in has run, think might as planning our not three the we so some margins next be room earlier, to much years, businesses And there to long the cycle he upside have the ones there. all Ewout that expand the the

Peter Appert

thank Ratings on some China, update an of local Okay, can get currently? And the issues us guys context you. on delayed then that of Has potentially you the the into give to business? the efforts been just in

Doug Peterson

we on a progress to different and the China initiatives hiring we’ve made rating market, we of filed agency, where couple go have we’ve When license going we there. start to got people. a that great We’ve started a

vehicle. legal a have We

of head business. the a have We

financial to products data, China able about can And climate what also Market now, Intelligence launching Simultaneously, in we’re so out we our to a investing to information working cetera. that do, build be on business. we for are through very foundation data right players, hard provide et

China very see slow as investment. a we So,

something at point. in integrated, become more will this their to China markets gets in growth some we’ve us. it the into global we a as critical gets more and run I their the future. of don’t – And market be the But think because see market. markets currency absolutely It’s integrated going the capital largest creating we want for to see currency in world the as the financing we of said near long this is lot be before size in that’s of the

So it business the keep we’ll from started has progresses. agency, local with updates tangible you but giving initiative no as our rating

Peter Appert

license. get did the you But

Doug Peterson

We the have not received yet. license

Peter Appert

Got Thank you. it.

Operator

Our from Research next question Partners. from Huber comes Craig Huber

your You may ask question.

Craig Huber

and A Hi. I Peter another question Yes. have one. to similar

you market what license be start get in when and personnel place would the China, that rest there market? participate in that do the domestic that best you to to in like, you in expectation For think your how, be is get the to you license able might once rating put

Doug Peterson

team all, on ratings we the ground for have China, some of a First – years. already bonds and has doing which been in for

on team the a have already we so ground. And

We commercial been on I But on global up, an that we’ll license. we be move we that’s when ready for information. they’ve will quickly I it ground. do once our have people to to going we’re global not focused have because we’re an also do, so license. But estimate set issuance for when when can But through come don’t – we that get yet. the move the estimate and have getting get don’t

Craig Huber

year, I sell products? of you and March the the customers that of side, And on of of on if side please? where Kensho maybe do XXXX, you pricing you also But as in think in see should and this think your XXXX, improvement could help think the years, of benefit so to the then most couple you the just out, also, also, sort that we importantly, next what the the might products, out through segments guess, greatest volume expect a acquisition cost

Ewout Steenbergen

Craig. Hey,

that is ago the how with very the developing. we linking. quarters opportunities and We But all datasets Omnisearch of entity linking already The projects our other Kensho underway of about very that mentioned remarks really currently are all about are We There other five there’s businesses. the through initiative. We during are prepared a That’s are in projects Crunchbase. excited large Kensho. mentioned and datasets the that and now company two underway. algorithms the

that the data we linking that about doing, workflow whole ingestion thinking management. We’re and are

We platform, have the are Market Intelligence where on new testing almanac. we event the labs, Kensho initiatives

in that relation models stress the predicted Ratings. have are to We

initiatives have We going data linking our particularly and to on that price unstructured Platts, with assessments.

businesses. – So on there’s all going in initiatives our of in

the wouldn’t really one on versus segment I specifically other. focus So

we help Of will services new course, initiatives we about products to because about market Kensho deliver that be of the opportunities the not to will can with we of truly these products opportunities we But could better, product past. the new think company. part in markets. We time think believe quality believe the a growth, better. believe that And efficiency ultimately the that the be and will deliver – will for with Kensho innovative we’ll revenue those deliver

programs So this benefit overall, efficiency you Kensho will within some see across company. overall, the growth, believe faster will a benefits. And help a will with some the efficiency and top-line be we board

Craig Huber

Great. you. Thank

Ewout Steenbergen

Craig. Thanks,

Operator

question next from Foresi comes Our from Cantor Fitzgerald. Joseph

You your may ask question.

Joseph Foresi

slow. rates issuance is most first rates your assumptions GDP assumptions, wondering are Hi. guess, interest built on rise, where could interest in What GDP you assumptions? And but to see your question XXXX for volatility? into that causes My I’m those the happens I what if

Doug Peterson

GDP now Europe of what at U.S. in X%. initial that right is have the is built and forecast. we The growth an assumptions Joseph, below this this But X% that into a for is Doug. about slightly

for back forecast, I market which look picking very as that think We recall, as But with in the phone much the well growth But we call a for you But activity now. fourth active. is going more to up I’d well us, as area positive more our economic will February and we States at built is in of which activity. the these first in call, Europe. that capital issuance Europe are last in We European give see based and be capital the We’ve been off the see we looking at start to to saw actually quarter with to an looked quarter, become draft as preliminary see on a that of markets numbers United in details have for – markets what kind the we’ll next that, want pipeline. more so right the come going are as it as quarter. you us

Joseph Foresi

the side my the people we lot been from work on forever. the position. algorithms the a that been then what analytics for around second going are question, our on has The of is data we’ve best found on And AI the forward. data done Okay. and have And that opportunity in result probably

talk that stages, about context, the data, early monetize, you forward. what just and you going Thanks. it’s example you do in maybe So if could can you how can it’s think I one know the with acquisition even Kensho

Doug Peterson

Yes.

to aligned. down more very data analyze and philosophy will commoditized future advancements Our and very that is technology. with the that be We of rapidly more the data in will the believe come cost

you sure advantage. a making about have all it’s first-mover So,

the You sure industry. with to advanced have organization in most make the anyone of to in insights compared you’re individuals quality right that and unique your else capabilities

the new that can new supplement datasets can datasets on fast-moving, agile the products because artificial overall can very existing we about that Kensho of to thinking rationale So nimble, a intelligence transformation our will the will much unstructured is services a that on intelligence. be with and structured with what market. acquisition And top datasets, that catalyst the and very exactly we all we it of help a company a as accelerator, models, that why did new help of is provide to as whole human an as strategic mean combination S&P of Global do

and markets Kensho is going, very that where believe direction exactly that the much that we S&P philosophy. are is of much very believe in rationale will the we have Global as strategic So why today. We pleased to that, the so be part

Joseph Foresi

Thank you.

Operator

Shlomo comes Stifel. question next Our from Rosenbaum from

ask question. may your You

Shlomo Rosenbaum

bit me Hi. – the my Thank question you in question very to go first terms was much to little want for a just asked to over in you more beforehand talk I from. I first are Ratings. just, headcount essentially savings back I here. Ratings understand lower the of be a a business. could Ewout, coming to the cost in if about people-based maybe And little where bit squeezing

trying it actions. is talked to, Is the potentially – headcounts more And up Or the restructuring on it what of just follow consolidating headcount-driven again, reductions? attrition really things reducing and that? business. in is real and You like headcount some other about estate I’m a of

Doug Peterson

Yes.

little this. give me details you a bit Let more on

year, we Ratings. in announced the was restructurings two last in One So organization. sales

The other change really organization. effectiveness. analytical This the the was one was to in organization’s

for one, organizations in had level, two So move higher, a the And organization. into commercial In some example, effective management more more I analytical situation, and deductions. could, take we at particularly now same. We this a the it’s Ratings.

to effective organizational have some made more We in structure, how the way that’s efficiencies – changes is the how operating a some organization. operating, changes, that have created

So those done are the in those announcements have past. two we of

technology making. those with the from as all you’re on in In the respect that now the well we technology. a I think there’s are seeing lot is of benefits to Ratings, what investments are as going that benefit coming

have the of Project workflows. heard which us about You in speaking is Simplify, about past standardization

that in place. have we Now

Now we have workflows. standardized

You can with, again, efficiency the that put effectiveness Ratings helping automation place. is and in And of the organization. the

investments In fact, this making of a Ratings isn’t lot in area.

Ratings looking It science We new is at based group. a have lot opportunities in great on data also a of today. commercial technology

behind expect the of drivers much to and where we the Ratings. bring the future. So company to because we is that seeing this those we’re to want the the philosophy part see those continue future And benefits very are main the in in benefits in

of investments, over the to those expect technology So we continue benefits time.

Shlomo Rosenbaum

see There’s the the start frankly, issuance? just And on cash the of we’ll analyzed overseas is seems kind to flow seeing tax largest are done the impact that, issuance cash increased you not to you. the impact lot through a terms And if Thank cash of the then you’ve burn level be opposed in in the economy, increase stay debt. when talk I same, have drive of can that flow. that we’re you’re in you that being my below throughout have a as there, follow-up. the leverage Okay, companies. an about the more will thought is – to is to to know they market. for used over issuance investments on future drive if of the reform, that And lot with And on, cash studies seeing essentially but of EBITDA-defined what – companies want leverage

Doug Peterson

is you to given to reducing team get we’ve something below What the back the thorough you’ve do in of the at as quarter. cash. of and need further that. second we’ve the those is answer to And back. I other that that States of scientific our companies asked or hit more below that the looking that once made I you that importantly, on largest But done $XX cash, coming get XX the I that you point back started go was cash. very large go the XX very, something probably, through, companies XX, it to That Walmart have a issuance take look – have give top issuance. usage mentioned top two buybacks. markets, you a something we’ve your looking they if gone combination really have to been most activities, to top back a the stock extent companies been tell And are including a would for amounts is I what of been coming is a using you just that They’ve earlier, you we’ll M&A can’t large their question, those in did been and at. that United billion Those question that have and that something very that, that. statistical and can Anecdotally, through the that

Shlomo Rosenbaum

Well you. Appreciated. Thank

Operator

Hung Our next from question comes Autonomous. from Vincent

your ask question. may You

Vincent Hung

like revenues increases? give us were Risk color looks you Services, a more up that On Can sequentially. X% it Hi. on

Ewout Steenbergen

Yes.

lot seeing products data We’re positive a particularly in the of Risk feeds. traction our for Services, on

was onetime as Services see having positive in out as positive There other that doing line in are Services are item that in well. seeing overall, we’re trend, by the feeds and Risk way, data traction. overall RatingsXpress also, the the business. particular products catch-up a that market the parts in new effect But well, of RatingsDirect, we Risk putting our We’re a

Vincent Hung

XX Got companies about, you’re talking it. those frequent And issuers? when that just on lastly, be cash-rich of majority top the the

Doug Peterson

companies Alphabet, not the some – issuers go few more bit it’s likely last like up you if not were had most back, them, you kinds interesting, to Apple mean, some of of really until they’re give Probably. color, given they’re just little – and been I they’re Microsoft, actually the large years. U.S., them of and it’s

issuance They XXXX as shareholders cash and were the opposed U.S. to deploy XXXX, If bringing also investments managing into insistence term in they you large potentially recall, their synthetic large we and from in the using to stock. of XXXX, doing back board and or coined back issuance repatriation where overseas. were buy on cash

eventually they while special – XXXX issuers issuers that XX of held a kind a So did cash they case cash, they et I balancing those the we’re but simultaneously overseas. they think going think to up in the What carefully. onshore do of of have how cetera, their that – kind offshore is out cash I in XXXX, issuance, case large and they’re were lot And of top own. watch XXXX, end their are

Vincent Hung

Thanks.

Operator

comes question next O’Shaughnessy Patrick from Raymond from James. Our

your may ask You question.

Patrick O’Shaughnessy

good morning. Hi,

me. for one Just

the areas speech And markets specifically competition Commissioner to As was gave rating one he recently encourage that the spoke SEC’s mandate of he a landscape. agencies. credit mentioned of which I in throughout see Jackson capital

rating of to the SEC fixed going push level to regulate credit there’s structure be addition, U.S.? they’re at looking concern What role agencies. In you of agencies a meeting rating in market regarding income week the next have renewed do where the

Doug Peterson

regulations many And been and the the been implemented are oversee way when a formalized, constructive that relationship more, around maintain we that – of added policymakers rolled entire very of comes industry that practices heavily across the this. out. regulated. through Congress all, the in very story the a for to watch very what XXXX industry. committees that, already but active, We since we it positive this We Well, started well taken had much think been have about process seriousness kinds going Patrick, a really finance we’ve competitive have we them. with the they’re with competitors, in good before, first day of has but as we high-quality and more formal. welcome provision with head tough right after think there on as – compete getting we And Dodd-Frank XXXX, different every there we The head-to- is SEC it practices had really And the carefully. the And those I out there, market specifically,

Patrick O’Shaughnessy

Thank you.

Operator

Blair We from & McHugh will now our question Company. William final Tim from take

You your question. may ask

Trevor Romeo

Morning. It’s Tim. for Romeo Trevor on

segment. in AUM index the a The fees growth was asset-linked the quickly little Just the XX%. at but bit for was growth XX% on quarter, lower

those what’s just between talk driving growth So two you could disconnect rates? the about

Ewout Steenbergen

than because asset-linked at Yes. what fees only. are looking goes This obviously, the is, cannot completely closely. them we an that relate together into you Unfortunately, also AUM element ETFs more very two, is

that that as also fees You as go well fund have mutual into derivatives. that OTC

effect that the it’s one we we linked, normally had So these was particular recurring would not derivatives this the completely quarter discrepancy which little to be is see a expect with other. OTC during percentages some to and will not third XXXX, two fees, there always growth that year. and some of than catch-up respect been between driving main wider The element has

the mostly level was XX% AUM of that driving and, of versus are that revenue it level therefore, in a fee you overall same show the So OTC to. growth fee growth level asset-based the ETF didn’t referring XX% the at derivative

underneath trends. in I asset-linked a that position growth So we the growth, I I’m for encouraged as are those future. points, in forward And the the the basis main well the element. levels particular think fees fees as asset-based reason If there about look is good very of

Trevor Romeo

Got it. quick a And just then That follow-up. makes sense.

comp just question, versus comp is head, that of on much You per a guess? but how don’t I lower incentive lower need lower be to headcount incentive

Ewout Steenbergen

So again, mentioned I that before.

that and think than The you as driving run XX% year If mix versus the rate that There’s accruals we other programs. to into from reduction, lower it’s down, for are well, efficiency data fees, XX-XX all other so elements about go many the external also expense last that, than programs about are lower estate at professional only. the efficiency related elements real headcount-related costs the year, that more all incentive lower for only. headcount- cost, this technology professional into fees go more look

Trevor Romeo

Okay. Thank you.

Doug Peterson

rest add the in you of on for to me at We speaking up let the of the it’s we the finding committed global engagement, and forward to but needs again interconnectedness that of and quarter to of questions new And with responsive we’re our the call, you. able on. to our in I’m best finding the with And to pleased the benefits it’s can together, need by we that that call And some assure lean, the provide committed very way of the and bond great Great. throughout the just we portfolio, continue of that and providing have not to to we’re providing manage your be all questions line to Well, But our to today with end driving that follow shareholders. markets. that the top whether you fourth Thank ways customers’ you issuance. work asked also that you elements decline that we’re diversified ensure ensuring can results. you look quarter. and close thanking the this we’ll ways growth, we’ll that for company, growth we’re to results engage today, despite efficient

see So guys, questions you again, your And comments. thank very we’ll your for you you, the in again, Thank quarter. and much.

Operator

session, hours. downloading participating months Global, from will website for thank S&P Q&A version of you now the be is call. month today you today. wish good day. available by XX this from a replay slides in S&P The maintained morning’s this On on call, about will concludes investor.spglobal.com. replay Global’s for A for and and one telephone we behalf That be PDF of from of available two the including presenter A for

S&P Global (SPGI) 25 Oct 182018 Q3 Earnings call transcript