SPGI - Earnings call transcript Q2 2020

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Operator

Good morning and welcome to S&P Global's Second Quarter 2020 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. now introduce would I Instructions] like Mr. to [Operator of for S&P Merritt, Senior Relations President Vice Chip Global. Investor you Sir, may begin.

Chip Merritt

Peterson, today's Thank you quarter are Ewout on second Vice Officer. President S&P for CEO; and Doug Steenbergen, call Chief Executive for joining earnings us call. today President and and Financial Global's Presenting

together we headquarters. As concern, calling instead our are COVID-XX remains of from remotely all a hosting this call

XXXX understanding. results any delays, today. our we We your issued notice for with a you If second you quarter earlier release news thank

financial be to and that contains statements to If materially In the you the of is financial copy conference discussion make comparisons Factors scenarios outlook associated from the release that can difference operating be adjusted future investors business especially and the managements. enable they between the and information accordance need comparable results of a call, measures release the same the to and to our financial downloaded today's during are from the subject about perspective uncertainties. provided SEC and US measures providing earnings cause This in filings This actual schedules, expectations our forward-looking risks that at and meaningful reconcile could we're the investor.spglobal.com. exhibits with our view call release as contains information. corporations website. periods of are to and found earnings can non-GAAP the GAAP. The corporation's events performance on with in expected calculated differ between and

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

this call I'd Peterson. at over media intended the investors be we time, directed to call is this Guarino that Doug? and for Dave to XXX-XXXX. However, At for questions the (XXX) Doug would to turn like ask

Doug Peterson

begin by extremely to teams for Global Thank our at about to financial dedication But wanted very going people welcome and highlights. talking commitment gratitude their to call. my moment in and I Good time. of S&P their you, a and second today's morning earnings our express to Chip. proud I'm this for I'm quarter take challenging resilience.

customers, to our could pandemic. best this way the a still second our other, our the ongoing how our our on our in and S&P we only to continue and to fortunate all of none permit. us with business in predicted, all we're these were developed to value working able people the support Because ability deliver office supporting enough enter environment, of work and be to through confident employees half to to comfortable have remotely move As year communities customers we're our employees plans doing when from will come to We're this. remain suits and each that on conditions focused Global we we clients the forward plans to largely and more home. that safe when of and highest We've the return

divisions Now, of me results. resulted the liquidity profit surge quarter adjusted business growth. the begin let second bond delivered was Ratings our second quarter A with financial operating all performance only issuance exceptional strong, driven Not in highlights. four revenue an

resulted during completed second also the Most to COVID-XX We at XXXX Day the from to like the and we our during quarter expense total a in the During some in prudently These achieved expenses details in X% controls highlights share as initiated efforts rate in decline the first provide call, in second putting pandemic. through successfully guidance. explained $XXX savings. run earnings on adjusted we to demonstrates May of combination outstanding manage we're place remarks reductions to the shares that more well I'd productivity and cost cost the million of Company's million Company his Investor this revenue difficult that $XXX and resulted in will EPS quarter. additional of The of growth, adjusted reduce in review program as pandemic. importantly, a diluted a operate despite growth ability the continued Ewout reduction XXXX of quarter XX%. our increased environment.

transform a also technology where several these initiatives work. initiatives we [technical the continued serve design growth products. over moment and customers, focusing the few next introduced how and future months, we information difficulty] a work reimagine launched our we in we new I'll share new will our and how of investment internal and our on we to on We workplace

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were solution businesses. minority partners to we business S&P We and taking them online Global expressed not learn research content. are first visitors with webinars the customers, asking COVID-XX NPS and listen Our each strong half at from have all overwhelmingly chain time via In our are our of websites of and weekly of during how public and Similarly we do the supply to availability during of our acknowledging related discrimination the survey calls, and customers and tolerate change. year. that strive end for a frequency LGBTQ-owned supporting we were part a diversely advocates feedback, where partner efforts research and to Our and increased crisis? to ensure appetite added the veteran our we insights and question extend have to women, other April, are the robust COVID-XX of expressed our positive across insights this

XXXX, website give our of communities. on consumed our million contribution and environmental to Global foundation and Company million in least spent also make back QX. and equity other We at to with thought visitors, support have our inclusion, additional gender with scheduled time was in relief, in our our leadership pieces, justice, In and to webinars commitment to S&P reached is line content In levels site communities, quality events. to racial $X supporting and record able the the COVID-XX line virtual social an contributions support economic the Foundation $XX sustainability, make organizations organizations of

in X.X to increased have nutritious help hot organizations PPE distribute in United distribution to second million results COVID-XX people during the used grants to foundation families to $X.X the X to local locations food parts To people for feed recap XX% and been connect many financial of States, revenue vulnerable the pandemic Our quarter, Brazil in million meals India. billion. across the kits

operating profit to XXX XX% adjusted margin increased profit our adjusted XX.X%. and Our operating basis increased points

profit we know, a basis four-quarter increased points to you track margin trailing which XXX adjusted basis, As measure on and operating XX.X%.

outstanding increase the adjusted to X% shares year past declined addition, the contributing In EPS. in diluted over XX%

our is business fees revenue of of in non-transaction strengths over subscriptions In portion asset-linked Ratings from the from our model. XX% Global business came indices. of our or S&P the primarily XXXX, One from of either of resilience

by of known schedule. and is as on addition, transaction-based predictable revenue it the maturity a Ratings refinancing of In much reaches debt driven the

of the of that Another serve. wide sectors our company strength is range we

utilities, of majority governments. well to addition industry customer numerous revenue, no one one technology, institutions, oil serve gas In business. because of no of industries as our represents the including diversity as certainly integrated financial this And and we and

fact quarter, underway. Each In revenue. our to non-financial highlight we our corporates of projects and represent few categories almost XX% a drivers and important key industrial business

start let's with ratings quarter, This trends. the issuance

total for both investment During the the XX%, times corporates Companies quarterly large US enhance grade or bond bond global loan positions banks during several quarter, include way issuance we increased into do line, it's the unusual it's tap markets global to and the ratings cash XX%. so. increased led also issuance. high market our with not for quarter, yield for to unusual records poured second the bank if to issuance,

on March were tapped What then also weeks of later slide. to a of revolvers some and some end repaid However, bond with termed June, turned that paper you volatility. period bond market, commercial came of market the corporations interesting And between the offerings. the and commercial the week third the the approached there multiple straight issuance, companies were over market issuance was finally market to new out their the several the was came with as that paper the companies debt way the XX some of and next issuers debt revolvers the frequent as with see new experienced great

finance aggregate in increased grade structured investment increased issuance Increased China. and finance Turning structured to decreased new to asset ratings every to US bond bond the ABS. decreased with issuance due issued every three asset overall Asia, finance large Ratings decreased increased across class. and increased XXX%, issuance In XX% except XX% declines data, grade as domestic in yield XXX%, European class, increased XX% bond XX% XX%, public and increased as XX% in XX% declines the investment high-yield high X% in

offices. are the pandemic, reopened we Chinese As China recovers ending have our and lockdown from

business. pipeline the should the person continues meeting to grow, prospects While help advance clients to in

see down hand how see increase in XXX As the on during XXX in corporation's quarter compared you and these last side dramatic this April. of with the revolvers to drew March mentioned, issuers here slide you year. over And the right can

to this slide, in upcoming of changed first points of months. in this maturity, and data. year much the this try of forward? of was is a how different the see some can analyze address level years On we few with half next whenever issuance in this we the felt six the unprecedented quarter the second from strong investors you time, not upcoming as pull is, have of Because of past the maturities data much we One questions ask issuance, there

appear the doesn't months, activity. have issuance been So there to much despite flurry last pull-forward in few the

every increase. growing $XXX Next, by debt year X% clearly of outstanding, been amount approximately global you first the increased amount we of of look see at can the the debt billion, or outstanding a of year billion significant In six total an as by months average this it's global $XXX

So global growth of loan a that debt. not level conclude that is pull-forward we surge rating in has issuance unusual. uptick created the activity captured the have Instead, an issuance in new we of data. is not activity Bank in total corporate

loan during of an since quarter. element revenue, like XX quarter. were bank and XX% second bonds ESG to progress each footprint. rating revenue the the important ESG High-yield $XX In clearly across company However, evaluations we our million. prior this major the is were period Ratings issuers it decreased for XX from are and option the of it's strengthen to emphasis quarter the disclose a completed Ratings continue in year-to-date. or In quarter we preferred

also three green evaluations the during quarter date. We to XX completed with

mining dataset on three data In public reaching PET analyze Climate based this scores enhanced AUM new for lending factors addition, the our climb The daily Consumer owned Global was on SAM US, into recycled launched $X.X S&P earlier bottle the enabling end by than year. has post at the ESG spot countries. Platts more that competitiveness portfolio material. ETF, and Portfolio for metals price professionals continues launched to and In adding The Trucost X,XXX covers to trade assessments acquired Analytics of billion June transparency view. Trucost we marketplace. been dataset data investment XXX data integrated ESG, companies ESG we private XX and launched to climate the the assets Indices, bills located in

energy the growth, screen more critical These include full medium data the end to and have market Platts Demand Analytics Service with found commodity analytical over we and second are company's Demand commodities. of been the contract has on trajectory in quarter as the the Scenario marketplace energy and XXXX. impact be of comprehensive of consumer price over gives risk technology, We capital markets you year addition, years SPS the This history and a the scores quarter. Energy to provide milestone In of ESG back well a offers variety to traction data fundamentals, scores is that the XX space annual related interconnected exposure respond The may of including growth valuable to evaluates value company's have opportunities the at long-term based qualitative dating issues data ago. are as insights nature in SAM feeds services needed across profitability, Energy of news and the and gaining service sustainability the arise leading This Planning S&P operating to that on of analytics scores for markets a A assessments, we think and in environmental value been of World access that to form business tools into World a and market Global than energy an and and dataset the XX company. the SPS clients during Platts underpinned XX% X,XXX view on the of that to launch companies. for preferences. in Scores years presented by can described response policy drivers transition. transition and year significant sustainability with efficiency available for data. data compared the the risks

the the depicted scores quickly these have is data most become for sample the industrial of company with sought-after this of right of our marketplace. datasets A the data fact, an In on top side slide particularly products. innovate and components score new the our to during continue pandemic. with this faced all distractions underneath. row I'm scoring launch total in employees the and ESG They that pleased

techniques Market to of many readable few Machine from machine and Readable SEC a applies extracted This text just these. be Filings to highlight to interest is cleansing might me new parsing you. Let offering a by of Intelligence of data Filings. regulatory generate

allocation design Our the XXX Markit multi-asset credit We'll use and iTraxx new CDX multi-asset to indices a bond phase of and IHS first IHS Markit's strategy. multi-asset to class the indices business In is with benchmarks. liquid S&P create iBoxx the to collaboration, companies working and indices. partnered indices the construct are

of first Chinese to the up continue operations, ramp launched we As our we Mandarin release language RatingsXXX.

analytical digitalization with of important and broader of the of efforts Platts Platts has Oil introduced part of These to in consumption from provide clients for the to markets, in commodity effort a phase highly the commodity the As fundamental valued quantitative APIs. APIs contributing model. Platts work of and these to new in data back-end multi-year the dataset, two selected development are Database beginning World Refinery services Inventory. machine customer our insights systems direct APIs

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payment S&P an In company a offer score behavior and addition, our entity's identification model, probability a MaxLimit, which and liquidity default we statistical profiles framework of the of risk RiskGauge that based Indices allows potential the and commentary, trade on PaySense and XXXX. Jones the survey of for exposure risk Each chart appetite that risk assets. Dow This year, annual highlights macroeconomic maximum releases dimensions, by element. of multiple recommends limits depicts incorporating user survey

actively managed trillion. to $X.X our Asset increased funds benchmark in XX% levels that against indices

passive in underlie in to will $X.X BlackRock category. and $XX this both indices S&P new in anticipate categories Numerous trillion. in funds which indices State increased, our to fixed the billion the increased trillion invested growth Assets with and Street trillion, increased index beta We XX% to ESG UBS, products in create include and launched the income, which including products largest by the smart further Other XX% $X.X XXX, XXXX. EWS, $X.X ESG, assets.

like I for additional provide to our Next, outlook would XXXX. information around

XXXX. X.X% loss XXXX than emerging expect a is permanent in to output. calls means GDP Due area economists contraction The lockdowns, which weakest forecast. with month, GDP that of our to with bond into in the driven me India, issuance global our a Earlier The support central Let issuance result issuance expected initially been start of for will the and forecast we updated recovery upended The purchase issuance a is deeper previously windfall contract non-financial forecast. fastest also decline by to market between to take which to issuance and increased their has effects markets, the confidence than this surge Finance downturn GDP in excluding in unemployment International longer after outlook. a our now is liquidity versus in This notably The extended XX%. increase our liquidity. correlation global for global of anticipated XX% expect area Finance, XXXX consumer to in initiated in banks in Structured Public we programs XX%. X% a expectation corporates, previous growing

on impact macroeconomic other maintain watch the We a close factors and our continued to business. that

ability unprecedented behave and are We macroeconomic of uncertainty precedent. predict of terms react geopolitical little great in there in historic is and a times and forces might to deal or how very

We monitor better on and who clarity gain to the turn our call going into visibility developments will global and impact continued we outlook. Ewout the to the scenarios, to as performance the year. hope additional is now global climate insights economic and in get into the Ewout? over into I Steenbergen, and financial provide political further to and company our business

Ewout Steenbergen

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

Let me adjusted few of financial share earnings I and a moment covered results. revenue to start our take per cover second growth. with Doug highlights strong the quarter will other a items.

some due management in freeze, of have T&E, segments the These hiring are we difference and also result total COVID-XX. included organic the is same expenses professional and a have but While a reported growth, lower between of Adjusted productivity to at of actions aggregate to advertising in This and programs, response XX%. declined in reduced reductions X%. revenue promotions the use they our services. outside taken the

However, in Adjusted in rate due primarily the profit resolution jurisdictions. revenue improved on to strong tax based basis spending XX.X% growth continued. expenses. examinations points, margin and to of tax increase various improved effective adjusted The operating growth lower XXX initiatives in the successful

the loss meaningful restructuring $XX charges by changes an exchange where positive adjustment, Intelligence; $X in non-GAAP foreign retention and UK The a in in Ratings expenses; IR million web generated impact this gains business deal-related million a EPS quarter, pension adjustments amortization. disposition for The $X.XX. only negatively $X of on They adjusted million and in the hosting related in included from was had Market million impact impacted of revenue in Kensho in collectively $X corporate $XX million. $X pre-tax quarter of million. During a was rates

with increased tremendous This revenue gains. delivering quarter, all delivered four adjusted profit Ratings operating and the divisions

except Intelligence, the increased moment. profit portion divisions a where investment On basis, provide Market color four-quarter on taking results business operating adjusted for margin a large place. is I'll individual in of the our trailing all spending

low sheet, leverage to and liquidity. ample Now turning sheet balance balance has the our

capacity and cash billion, $X.X $X.X of commercial outstanding. We no revolver equivalents an of paper cash billion, $X billion, debt undrawn have of and

undertake were light a the existing portion Our certain of of board end issue an year, cash this No under increase $XXX to flow XX, an last of On program prior versus July while purchased the program debt price share of this year debt of quarter shares and In third half was our in attractive second made ASR during in billion was subject over ratios new approximately bond opportunistic rates, approval. The the refinancing of the items program first of share. million in Free per declined $XXX year. quarter reached new we slightly completed. this market ASR $X.X excluding place. was the may the conditions repurchases period. our average

may the repurchases repurchase share potential the was at later year. we the completed, $X.XX not Board of totaled consider in Including Directors XXXX. time, this share our resumption repurchases While first our just are resuming a billion half ASR in that of of program

In have free dividends activity This dividends year million second anticipated our been the this for anticipated flow half addition, of to with in year. along approximately year. of $XXX XX% paid the amount cash so of far the

Doug turn expenses the driven organic declined acquisition growth acquisition Ratings and in XX%, already results. let's the RobecoSAM Ratings increased X%. CRISIL's from to revenue the Associates, the increased issuance by and of revenue discussed. Now XX%. excluding increase business was Adjusted This Greenwich revenue of ESG division

strong in This corporates. activity. in changes primarily basis IT its depicts point to in structured in issuance earnings insourcing On by due to high adjusted finance markets, offset increase U.S., partially segment Non-transaction very adjusted increase the by This four-quarter resources issuance slide XX% profit that X,XXX fourth operating segment bonds and X% increase Ratings in the basis profit grade and to trailing management revenue XX.X%. in call. globally increased largest we the a yield due our rating contributor Excluding points and to quarter in XXX rates, increased adjusted loan foreign bank X%. declined on operating margin end increased the investment actions revenue in exchange segment revenue XX%, basis, increase margin. of decreased discussed a Ratings profit the revenue Transaction expenses operating weakness XX% and resulted a of

increased In decreased and and finance the addition, financial XX%, X%. CRISIL increased structured services category XX% other increased revenue XX%, governments

the and of decreases in The CMBS. largest products. in slide, can right within the On revenue were you see side the changes structured ABS

revenue to due exchange gains Turning derivatives. X% the to Jones delivered primarily Dow in traded growth S&P Indices, segment has

Excluding a approximately of primarily adjusted would non-recurring to improvement from benefit of in second second profit of segment In operating quarter, XXX expenses X% reported million adjusted $XX increase quarter profit revenue increased we adjusted have due renegotiations, contract points. margin segment and the XX.X%, a operating in the X%. primarily XXXX, management actions, of an X% growth, basis

led On exchange-traded the to XXX the profit trailing the four-quarter basis, quarter. basis increased Revenue was segment operating during points XX.X%. growth derivatives adjusted margin by

Asset-linked real-time end X% million day a due Exchange-traded in growth increased derivative in to increase revenue X% quarter primarily fees approximately subscriptions trading second in and of of increased the benefit due of decreased XX% Data $XX fee. on AC and an to non-recurring XXXX. custom volumes.

of were net billion X% For distinction billion. our ago. AUM Indices division, quarter ETF ending year, trillion want to This quarter ETF to in the and which over make a between AUM I $X one resulted ending past inflows compared is $XXX average higher were clear $X.X year and declines market AUM.

the totaled in ending options XXXX, activity Kensho figures out income. AUM year-over-year. Index based VIX billion. Index our the with XXX S&P inflows inflows waterfall best was funds our want gains in in was the into have of billion & market fixed increased are the associated were the the declining with into quarter first category chart contrast I at Industry the Micro volume and the Activity year-to-date. quarter. billion, $X We The increased the is due flows ETF of which X% quarter at with right. X% disclose to in was CME market U.S. futures flagship This Composite on options funds $XXX folds CBOE losses gain $XX to indices Sequentially to gains billion. appreciation S&P XX%. the on largest traded second nine of as S&P end also revenue XX%. activity funds Our passed and new activity quarter quarter the equity E-mini shown economy's because tracking billion depicted $XX figures launch exchange complex versus and AUM, average while Flows $XXX declined were CME the net totaled in the The second at point equity increased majority declining that successful XXX increasing futures. using where

Excluding to and in this growth organic CME The XX%. X%. while at complex reported delivered product, and volumes sales has becoming to driving lengthened increased quarter, a and pandemic spending profit equity launch the growth adjusted COVID-XX cycles, X% XX.X%. XXX points increased particularly operating usage, the more primarily Market operating you, the of segment XXXX spending basis Marketplace the due points trailing half LCD. partially the Adjusted to of actions. quarter. investment increased On X% on is profit revenue margin Intelligence XXX the SME margin operating for second space profit are including Desktop, by RiskGauge segment investment expenses headcount Adjusted XX% segment that and visible the of the projects adjusted and Much increased to Data basis Market last four-quarter Intelligence of XX.X%. Panjiva, Research, increased offset declined XXX acquisitions, in management of this basis, record

X%, divestments, Data grew Credit Solutions X%. revenue grew X%. desktop Market the X% grew components, Risk grew revenue Solutions while and and Intelligence revenue desktop acquisitions Management across excluding users active Looking

resulted from conference of grow X% RigData, the categories decline X%. with The subscriptions both growing sale high adjusting this zero and revenue increased And year. expect impact now to basis, single-digit Platts, organic services almost reported both increased to of core to revenue million continue this these We turning revenue trading a quarter. X%, revenue to COVID-XX from for in and an $X global the on pandemic in

us revenue never about conference discuss the has of $XX annual heard You business have because it probably only million.

prices, profit margin some trailing Doug significant close quarter with increased to efficiencies reporters, initial markets value Market-on-Close Kensho enabled our while for of has had basis pricing a analytical XX and produced Kensho with However, time assessment recession conferences. and the putting enormous oil customers. total and of and has in many XX adding process between Last you taken productivity time in reduced production basis of and the our resulted XX%, operating The points largely the quarter, the segment shift has which of adjusted revenue, four internal team. the savings by This to success XX our of on U.S. quarter. Adjusted Steps profit evaporated and powered, to management reduced to Kensho segment average filings operating with XXX the X% editorial oil business are surface are improve being shared gains business some The of will our has Many us because divestiture during our this of bankruptcy firms impact With pressure by of virtual to XX.X%. them cost exploration due small this are for and has market Platts Platts part now year-to-date. customers. XX.X%. increased our RigData the Adjusted we actions. already COVID-XX customers. XXX future. margin expenses decreased an accelerate the process. assessments for to publishing also points

during in of the in to $XXX in categories Our Investor I'm our achieved. of collaboration productivity offering discover was at faster the million that announced now commercial that to analytics been developed of Day program quarter. May X% share and XXXX the our Growth customers ongoing. X% the efforts to assessments has And with we value are pleased each

we target the fact, in $XXX In million productivity and savings. delivered exceeded original

and estate with centralizing know improvement the work be and digital virtual acceleration, automate activities, we change periods That our the of what guidance, consolidating utilizing savings In where and a to of said, experienced our XX% COVID-XX reducing footprint there will of datacenters. and to have how Some real work. through be nature. areas prior being were assumed impact COVID-XX had we discretionary the standardizing RPA would given that key processes, of we routine in permanent our we from in

disclose impact business at of segments new our year. months and million to potential a analyze, guidance. all scenario our each holistically more $XXX opportunities slightly we'll program eliminated past least quarter on and we introduce several revenue have meaningful over the As COVID-XX to been this had the impact baseline in attempt this the expenses later first the reframing that compared a that productivity on

in mentioned have business, with There revenue a was a the the businesses issuance improved quicker second was of AUM call, our on was to previous there indices guidance. than by $XXX other Ratings liquidity-driven The levels that million. as improvement in ETF earlier anticipated. surge impact $XXX we million increased As line in our revenue modest in during quarter

revenue second impact, the the to XXXX. bankruptcies this impact guidance. quarter However, items our above expense that on subscription taken customer have an until worth I our generally was EPS in want additional in an businesses, by the cancellations you not a from million $XX full second From management remind our actions about $X.XX previous any in year reduced quarter. expenses Collectively, there will these that occur benefit

with improved quarter, frames This with scenarios this an The year XXXX Last third we're with we based about remains this of combine late scenario our share. $X.XX has baseline of been then time outlook three by increasing adjusted and EPS latest you diluted updated half for $X.XX, introduced quarter on to for is begin guidance our the per different If recovery. baseline the second will our the when forecast. economy recover. scenario

and S&P specialists the have various which company oil from late economic, impact various we forecast on for accordingly recovery give quarter our addition, in market our sourced the this our two that will are our addition key providing time other these credit, items platforms parts In of definitional can be across We scenario. scenarios view revenue inputs metrics, updated in research at fourth to the found derived additional are as we and are and these for analytical of to and from Global. the Many scenarios. color

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third is third on column new quarter revised adjusted guidance late XXXX our recovery scenario. based The the

increased We Corporate accruals guidance. revenue me Now, on from It balances. adjusted reduced has to interest of million received has equity cross-currency new been to offset and diluted swap the interest expense income partially lower due by compensation new a to to and increased review Interest interest due S&P impact expense to million contribution income increase. our Operating Global EPS increased in let margin the includes Foundation. guidance is a -to-high million $X been mid These incentive million been $XX.XX. $XX.XX our cash to guidance our profit XX.X%. the $XXX range rate to tax increased $XX unallocated our The a result reduced due $XXX both expense. of XX.X% adjusted of by has to items derivatives, net to compensation. to by range range single-digit a

free professional are through this In that we during exceptional results to company standards to the very flow and cash expenses commitment expectations and this I'm The team of Our proud $X.X of $X.X quarter. execution a outstanding has delivered range our billion. the performance billion for conclusion, delivered of our businesses our resiliency highest of and year-to-date have control financial demonstrates period. the leadership the in that managing apply to the

we the sustainable to While let And with in for for back our me deliver our support to to committed and essential navigate customers that we continue to your Chip provide uncertainty, to over remain communities. investors development call turn our intelligence transparency for through questions.

Chip Merritt

Operator, will Instructions] we [Operator first take our question. now

Operator

Kaplan first The question comes Morgan with Toni from Stanley.

ask may You your now question.

Toni Kaplan

in this I some incredibly margins previously, strong if wanted quarter. given the to us medium to sustainability seems operating the make over And term forward? of mentioned XXs you've going the high business? the ask They Does you on just Thanks. just about the exist the the leverage that that margins. could rethink color are in give you Ratings the

Doug Peterson

XX% the much, Ratings morning, our trailing for up so Good of going pleased Toni, are we four-quarter at see results. on your you level. to basis for and now thank recognition course Indeed, margins the of

expectation. where and will program is, and you full we around to What given any details this way this level introduce the And the We will should of divisions. more environment, same that new moment for because we're is that work somewhere same that's applicable year, to moment the do time analysts investors. targets be not to expect think you have should respect new we this could and the on to that margin decided that not productivity right do we attach at to year most our Ratings going that XX% by our external later what likely, that's and to - provide margin aspirational that changes we margin targets to all aspirational you the and the for for with make best this is other

So, not margins is moment, XX% this Ratings for level best the at but around this for year. that expectation

Toni Kaplan

And that result is savings? So mentioned expected it's is the the Reimagine to or maybe more that in wanted Is workplace program productivity bit if it's to what cost reallocation color program program a program it part related well? of different, it to comments, expenses? early that on get you that of as Thanks. and a just just that means and in little

Doug Peterson

absolutely. explain to And more is yes, an that define operating Reimagine what is model. bit aspirational future Yes, our me because let of a program the first

where are expense that new around reduction interact, course going accelerate find program. way expectation leads that can productivity in talent we a going going the some are make to we is also we globe we our the consequence going how decisions, So will and of are footprint, to up roll we to will as how transformation, that work, digital the to a how lead to physical and to savings in our

the some further in procurement a after will of So working we there if a travel, a you real will travel we also spend of go try in work will think new element a program, more company. in reduction and some virtual will most in travel probably our permanent the older the infrastructure elements to about our at mix expenses, office, and reduction and productivity cleanup our that of more likely be the that estate, of key technology given reduction be be some

elements. the key those So are

project productivity right will the new Reimagine from that the you're input program. outcomes So an of for some be

Operator

next with from Manav Our question Patnaik comes Barclays.

line now Your is open.

Manav Patnaik

how some should more in the 'XX think know that's a impact this My what look just range? on and be could little the worse 'XX, we exemptions, $XX price I just on first that curious range. have big there? saw whether we about Platts, wanted color like you your you think question just to Just oil to environment bit a than in in $XX was just around And context, current what

Doug Peterson

I'm this the be might there last that companies E&P on that range little that US year. to earlier impacts on at so market that bankruptcy been capacity. took in in - some the to-date in enter been the there of $XX Manav, are far the you overall oil have - bit range. days asked the oil up a the a We it price major because question it of seen the see now few XX you've filings by above Doug. to Hi of dip industry now, other from this $XX,p starting also lot a dip are There year. Clearly, in that. looking the pick the this hand, to that people have is pleased actually we're is $XX Right right the

traffic. of all our businesses in the put able the incredible to organizations our webinars The we amount What meantime and So cases and the over this up is were we're engagements customers seen at people We of has the of distressed customer and we're dramatically, we a seeing from our business. more some time number activity with we've hard is going had we XXX%, in at in our the very our has We different engagement our and to across the working that taking regular but lengthened. all the side, beginning, and being reach having there both quarter that attending all everybody put able we place specialty though, - seen, side mentioned meet people obviously website cycle the will home, seminars as Platts. of last online. has increased M&A in XXX% sales to have we - of

oil So a price settling $XX do to of a beneficial. with of do lot difficult, feel we customers, the though we but range the very it's going is be engagement volatile the environment, expect, even see in we that

Manav Patnaik

competitive identified that product, private sort has want to to it's get like the pick talks and innovation. space, there after? up? because were coming company everyone going help something a what that look target on Maybe of lot little are some does it landscape you there market hoping just sounds it out that seems is RiskGauge you And new was company like every SME And you out and in. about I what great a maybe which just for space, could like Like, solution, bit,

Doug Peterson

Yes.

had need its limits, also of credit, that with the talked credit We couple suppliers, - RiskGuage. supply better, we we've a cetera RiskGauge information the is identified something heard chain. things about with this et ago It's its the meeting independent our about customers. for years about So faster,

consistent used it's globally. so RiskGuage designed that's we've model a so approach, And with a consistent

cetera. sources As globe. then global XX the it's able this consistent et you around services, in with now a we're into comes a that's now, over large and way company, workflow, from company's into applied to million whether these it's of or and deliver a companies that with But companies million multiple saw it's a it's buyer different XX bank data parts

a So multiple quickly. more, about their we where sources this supply can need decisions can area that get data of an data. very companies space We've see is faster, consistent that it's got chain, they and pleased into we make so that were we

can delivery it as have building technology credit our off with. We then we well tested. that the of this great partners that in time And build back we've for our been are as models

see into pleased you that more come. and this space we're we're to So getting should very

Operator

from UBS. with comes question next Our Alex Kramm

now line Your open. is

Alex Kramm

up. said, think Obviously, is algorithm time, issuance growth here same raised at of good job liquidity was the the lot still some reason. also you But the a debt the Ratings is all outstanding going the I maturity did debt alive. you people data for that suggest of a ask, the on course, pull-forward addressing always the of question business, going Going up, that

companies with are So cash. think I generally flushed

level they lower in coming is flush - So to Thanks. need next is that, there be that to that a that companies the alive anything years of to the maturities that some because confidence of don't and going a algorithm really you are and just level are repay gives that up? point issuance us can so better couple is not maybe of

Doug Peterson

Doug. Alex, is this

that me one. take Let

have of at analytics looking the fearing we you lot a be as for look a out we see was company a we recession. rush major it a what to position clearly, to the were time. all, put was was there in entered And going that of liquidity as first There issuance, wasn't market liquidity. can when no So to people this strong

companies now, going it rush new additional to they're deals, they're right - they're cash, of their liquidity. M&A with coming spending that to fill starts that some to to there going don't - on are so resolve And to yet debt? do companies continue out pandemic There companies their who excess see to the saw to going that obviously cash. going what to quite use their this, spending - need to if some cash We'll to itself. in going going and markets because to are that in they're to is it. cash to we going where They're get where later is are be use invest coffers to the out use do to they're it repay the also many in at if are because are exactly looking We with either cash that's know are operations, as

that today that XXX companies the the issuers this were in saw charts XXX issuers quarter about quarter, showing there - liquidity. were You the going went XXX and typically we there to were the to to provided that raise in market market the

it's schedule of well. we coming is behavior potential recession that think the what of even the could a is that this this banks - staying are because longer be investment we're going that see, pipeline off And debt predict kind schedule unusual couple so, will investors, we potential a given a going it's maturities still is very business, very the Now with to issuers, forward. clearly with other the companies. was maturity coming interest very of as with environment watching slides to was pipeline years think than healthy with to are based very though all core of going go that we new debt of is that what in the that we this of actually of touch you, up rates, carefully. just We're in be to our on issuance, we But of originally which see low go to expected, and next over hard issued one recently showed into do be

look to this is at always we if So going volatility. you quarter-by-quarter, there expect be

all run, you If over coming of it at maturities a see look healthy we the potential forward. long the pipeline

Alex Kramm

- So maybe mentioned couple today our a as gears what and be looks of numbers Market Intelligence delayed, the some about Platts, are sales and that as reaction coming other in negative there we as now getting cycles think times - in as is we have some of as shifting and the this the just base that be quickly you - sales model, bankruptcies may of in then through? should businesses careful about terms may any of of it you bankruptcies? delayed early any XXXX or impact because impact think stands - any cycles that those And

Ewout Steenbergen

is Ewout. Alex, this

give to Platts Let this. seeing very business, on Where It's better to impact and our take what from precise provided the are quarter of you question. a we a of actually you businesses than Intelligence Market guidance are is subscription ago. the me we and slightly sales we that indication in hard book a

in What year. see although what we the year, impact the is of your to we in on businesses XX-month encouraging than effect that a that at the year. that's of you the you happening the than following revenue So worse see because following or beginning then subscription less expected, see impact the is still subscription full fewer thought

affect, ago. what thought but it one overall some better have muted So we quarter than will slightly

Operator

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

now is open. Your line

Craig Huber

yield My which I'll issuance US, there, start the first to question, what the half bank Doug, of maybe you on loans, the thoughts maybe talk there of high sort the second versus pick outlook are year, is your on if just please? just could

Doug Peterson

is, and for had One lot see is segments. The it high are segment support there. area. downgraded in think BBB the Fed of of the I for continuing outlook now a and to that the issuance recently year The been Yes. that is rest of robust issuance yield we companies, potential two BB different companies

that companies going but an level, was We robust of are that another have deeper need that deeper in as you in be - the was would know of which the those quarter to to those if CCC is market, B, the see high-yield, a the quite area credits, the There going are they're the be companies. to still part second - cash risk the part if which issuance. that's the

points, that a not second ratings that The year a is to as decline We also second the instead that low. those X,XXX over high. been of XXX of basis the are - loan have be points. interest going continue strong, to Recently, the the and Typically, are in versus have spreads recently well. over be - decline though expect rates were even going XXX more of to half areas Spreads for there's XXX X,XXX. B expecting CCC pipeline level, is there were in in rates XXX recent and we're basis the bank the half be the

rates are high. still - still So are spreads

a of expecting one the recently. that decrease being overall question the issuance robust issuance sector we're So about has itself in BB with seen a lot mark

Craig Huber

robust juncture half And quarter at the investment you for outlook grade any example? just the are third of a expecting the for my year maybe the material second question, like So Doug, please? second dip after second quarter

Doug Peterson

robust of will the we during the the itself, issuance not but be as first as grade Not quarter it investment third was the necessarily year. of half expecting that are

Craig Huber

that? your half, on in preliminary up second But thought asking, me want what you don't still, the is

Doug Peterson

of at to is entire to year, to the the be up few forecast - you parse X% - entire that expectations half at what year the are the at maybe we versus about out up the look second amount second But what we that for it's up year, total was XX%. look going investment look up up are. we look about percent, the, - the is for flat the being for in X% the if at X% but half first in in ends the what up we half, a it's well, when total you our Yes, the and - grade year

Operator

Next question with is Silber Jeff Markets. from Capital BMO

Your open. now line is

Jeff Silber

got you coming about as looks might in well. anything Thanks. fairly to issuer potentially bit, House, down likely not Ratings more three change against up business specifically on regime have we hearing or in so. I'm in that It Washington, and the a Wanted the Congress White Are shift big focused we've more movement only election in and a your months a gears on side? but pay impact could potential that

Doug Peterson

on just Sorry, with mic mute. I was speaking

closely - are some very which what stay obviously very could - we So first the in of we in close of what the all, and to we to could the change pay or are election watching see areas. what topics, business. are going policy a work Washington been discussion about discussed to be about lot a last We Ratings of that issuer model expect There's that already few is around that's robust been don't the there about happening years.

expect it And it go it go to so take that would through is, the to that It would would something while. have have if we a through SEC, Congress. be

We that are others would with are regulators, dialog. expect that we members in relationship of with and with policymakers, we or active be we our could part

high we very right we Anyway, are so or we performance ratings seeing - but work of the a for way concerned view Ratings of the a leading lot what financial amount far say I'd playing specific Ratings is we don't of hoping what out - and in now. the at performance and nothing of recognize have Ratings you and performance that the fantastic that also on. made we're about that methodology see years happen of the And performance, we investment XX that watch Finally, I our this in very this quality last to have quality performance performed, of if Washington, our we're other during how look I period doing noise. the and business mean the very that Ratings themselves, markets carefully mean from could point over

Jeff Silber

capital repurchase. allocation on regarding share questions follow-up My specifically

what for a resuming be not share this speak you think looking could but the that later you to consider ask to think to they I for that going might said year. determine the Board I'm do Board, decision? repurchase

Ewout Steenbergen

Yes, this take let is Ewout, let me - question. that that take me

last because enter cannot a quarter of decision quality the of liquidity position, purely assets, course, cannot all strong environment, of our very our the company, balance you to driven the if of was situation. in And our points not a Of into Clearly time. sheet, at of new look such by at as buyback course you board. said the anticipate to pre-empt that, the decision we external performance this the a we really point program that

of philosophy It's the But us. by is what driven decision. that argument in are the a respect of external long-term really place. there the like an targets, seeing to target environment, and in no with to none So capital change in we is our around re-emphasize course return that remains such world XX% I would so

for management the So more this is really short-term a consideration Board. and

Operator

Our Mazari Hamzah Jefferies. next question from comes with

now Your line is open.

Hamzah Mazari

maybe for big segments. you Analyst a various Could that did think the lot is? is while just about a ESG how is? us just touched you Day your growth on how today? on You over the across there think curious big rate ESG What that I How gaining just time? it frame do back, you revenue mass critical

Doug Peterson

the for with growth second of ESG XX% million quarter, approximately In year-over-year. across corresponds that about the whole revenue company XX

scores Intelligence, managers Market still ESG, CAGR is UBS, like ESG we to Street, mid ETFs. mentioned and not reason BlackRock, a as The about the the ESG we the about State DWS introducing We new yet, products with with Think product for to are new during why committed several we longer in XX% are that there remarks. think term. data several respect also collaboration the we are have and prepared

expect is of on that therefore the the all growth up and booked future, in was go quarter. will that but So in the revenue development second ESG million for the $XX

Hamzah Mazari

follow-up could around question specific historically there? tax more potentially. had you that think, you previously implication about it on on direct with what and and reform reform, implications US there talk tax you tax Could any so issuance for that? and interested headwind the away be slides a in the Thank with but rate, been My Clearly, had going impact a is indirect of you. bond US is you maybe thoughts

Doug Peterson

impact important. because overall you direct what from indeed are appreciate perspective company and is rates. asking impact Yes, this I more do that the the company for that a than the will and The question holistic for economy is on the as the tax

closely respect, a of to what should it competitive monitoring very geo-political we good say happening can ultimately that but ultimately rates premature and ensure from And because this any strong for perspective we economy create strong have for I business a stimulate course speculate what what But attractive an attractive outcome. is So, create investment our a company. be ultimately is tax in when are the is economy. is activities, climates, will become it should country jobs

So that the tax is to in in our growth most important future. any tax any obviously changes growth with the

Operator

George Next Tong Goldman with Sachs. from question comes

now is line Your open.

George Tong

be second that grade first robust the as in as issuance the investment the You half mentioned of won't half. year

Can up I flat from about that seeing that the you you or Fed you marginal think reduced demand talk supporting diminishing simply mentioned liquidity credit corporates? reflects are what X%. benefits are grade investment for facilities elevated like issuance pre-funding does

Doug Peterson

and the you way the you the fantastic was to asked their when show they any markets a so there potential $XXX economy that done as secondary I of government billion the this the used liquidity have. time that program is much billion Fed $XX of support they've program, it's They've at last of it's this am for because when authorities in not Yeah, bond interesting, - Fed look markets about authority only liquidity uncertainty. week. actually were was the sure if facilities, week. Fed and able a And primary more at corporate

out the And interesting there, having the are I so important that's the Fed that's out been it's been facilities been has support much much paycheck have backstop the there Fed can program the that provided the knowing that for could used, number protection that, forgiven. more this. that economy, the just lending there, way would in for use so be

up to the and other The used firepower billion grade market. facilities might so debt. So the of I as a they some the has market not and factors to stays with the support bond actual central of market are the valuable funding then, the markets one dollar and little happen we to to to question been your of Fed with having that direct by be go the $XXX global purchase bond back supported the promise will be little the induce as needs do as that been companies money active more think - Anyway of a with the in things, of to global to that then has markets ABS, companies swap and interesting by very been the to player though like it things that. will bit think for in the purchases. rates, think the Fed, to that of of itself to but is has what's what's driven they've Fed of that going that What banks see they bit if is issuance involved little low happen bit other a is the more investment one Fed. to and going stay spreads evolution market if We raise low, be going

George Tong

you revenue segment updated details can follow-up, on full-year in provide a as then And are growth expectations embedded guidance? your what XXXX

Ewout Steenbergen

Yes, of course.

the we are If the revenue divisions. our outlook quarter we all improvements at provided in guidance four with it the in look from seeing one you ago, of and guidance compare you

an guidance index meaningful that page four the a Market Ratings on We but that business course offset for all lost in also Market and more in revenue effect those quarter, Intelligence due to and late businesses. to for the so impacts are assets second part Platts. deck the compared is Page for way, was in And improvement impact performance the expense But an also of XX, you also on correlation. There next under slide because for that's in based the in saves of subscription bit the have a no see for indicated to two improvement but our there higher Intelligence our we an Platts, one expect a outlook related for divisions. management the quarters levels, quite

provided guidance debt decisions going actions, then and we commissions, compensation, discretionary elements revenue think The be variable sales on we are to you that's expect high savings are management's is incentive on So of or to course quarter. reason. lower, good the to expense the for last about expense actually higher, based compensation, saves so specific but if a outperform

Operator

Next from Nicholas comes with Blair. question William Andrew

is Your line open. now

Trevor Romeo

questions. for the is Andrew. taking Trevor This actually Thank Romeo on you for

on just Intelligence. Market one, First

us. a Now, we of impact the COVID quarter behind have full

data update other customers you expensive Just if changes competitive evidence providers you could the mentioned? us environment for since on any of vendors that or competitive Have or of the wondering there? pandemic beginning any switching seen consolidating more you've the

Doug Peterson

We haven't the anything. seen way, By Trevor. welcome,

Clearly, providers. We to of new about quickly, to able desktop were of new We any the service it's work customers. with the to to to major haven't or well a Clearly, our almost move to I ability out trends as immediately customer we any move our seen move customers. as to And from then to a across home. push way mean - to work own our with ability consolidation kind move What is our past. we hasn't heard like case, impact competitive seeing But have that. level of to at in very the it any high with COVID had things services, allowed the us a level of than our marketplace, continue own these you've us new seen higher really very to products, talk all customers engage new though impact have - we're in engagement a market. on enhancements,

home them competitive we But into there to our very get environment. we to being when allow tough of are but that is work So We factors, people - that were competitive a think do from to we comes looking, major competitive sort wise, we're competitive it see seen any customers haven't clearly consolidation. to able quickly. out very we

We changes themselves and and for the also sales their their cycle see asking contracts, suffering have with customers potentially own that slowed businesses have to down. struggling some

continue So we heard about see, we some haven't we've the to past, same talked those of impacts, the but consolidating. customers in about

Trevor Romeo

quick one on one then margins maybe. And

the I regions improvement. think margin of employees kind to of shifting over as about a in you gradually driver lower-cost talked time past

you pandemic forward. heard the that new I think the working trend have going to go virtual and environment programs. exclusively accelerate of could that productivity I you part this that we is if think what gives mentioned ability wondering Just into don't or the confidence

I you and still was effort? have to Thank So if to continue that just curious you. room

Doug Peterson

Yes, that's a great point.

the first the on the environment virtual is like needs main around possibilities, to Although purpose the is That all forward. the less is staff foremost say a locations I the that more going strategy the colleagues world. based opening in best of up of be room trying and time to at different find least physically course of in that to and because our would talent best together

lower cost at possibly that higher could mean locations, case. job less again, So more a colleagues strategy from and Yes, and need future And think with finding in could having we successful we company in possible. the cost be background started what that the the talent as that that be the to in locations. our as to skills We be yes, definitely to possible? might build future But with out cost capabilities perspective. started are and this I

Operator

Owen comes with from Oppenheimer. Next Lau question

now Your is open. line

Owen Lau

you any congrats expense second please morning outlook do driven Thank color you improved bit a there by assumption Slide other Is you. half or on on Good quarter. to Can issuance on $X.XX and more XX? the is want out? call a mainly outlook the that strong the and assumption provide

Doug Peterson

combination try following way. to a in And all of it's of me that. this Yes, the let explain

level at and recovery baseline we that the lower and impact third Market we expected reference be First, The in time. provided quarter expenses the book of explained is and better; we because we are provided the quarter to last on guidance so last than what very the you at account, index business need Intelligence Platts at reasons, anticipated last on scenario to obvious to expense provided the savings a take looking look into the we come Again as we business revenues that is quarter, before then of of quarter reference. than late that late for about we that also third then a - we that $XXX because higher time. I you you and Ratings looks clear the if bit if million

two part expense expenses, there sales-based the the and compensation, we there underlying expect to performance and revenues. components, our hiring, travel, so we because savings have related those with have respect correlated we expense incentive and ones the the obviously consultants saves lower, are on of commissions, outperform. are to have these so higher sales the the that revenues. are But are saves, discretionary fact In royalties, a then Think we second about with

lower for net-net, we those you So if savings that in terms elements performance-related altogether of half of put in outlook expense commissions. by expect overcoming $X.XX, to that be on are compensation and variable fact year, in the like we second $X.XX better the but

net outperformance higher. fact it's number, growth bit a of number a the in in So, terms is

Owen Lau

tensions China. us institutions competitors financial still I bit operate that's an if can geopolitical business very Yes, you think that to least provide And are will lots It fully-owned the other of be got you that? then two approval a China? the could think on in and Thank on your of you. you your I There great quarter, at please give helpful. view during update have but of one mentioned,

Doug Peterson

China first us Owen, very from to this with our the having pleased you've very and progress have as we along, and market. all, work is in Yes, from home, despite continue to our COVID we're Doug. heard engage well with of people all

since we time you published the of As we've know, reported. that more three Ratings we last reported

voice ground. We have building We've a great the a of market market - and team been share market. on

it's more criteria using are going think having going welcome issuers, one the et with rating We research for have in of or with the overall market develop. ours, to develop the that to to We market. it's lot But type having another which we market the analysis ground be but agency with oriented China, continues what's to than in regulators, license, cetera. webinars help of investors of global the that and be received are The people important limited market, also engaged is agencies really other our going that's agency, foreign the a that a remain attending rating to license the on doing. we rating competitors

be committed the we China. large reform very We the in is long a so about continue continue it the encouraged pleased overall. we market. financial And that regulators think and also Chinese the markets with to to We're discussion of by have to bond run,

important still So that the pleased China there. open for the We're is is starting also up. that and we - to us. It's on first we're pleased one the ground really we're competition

Operator

Judah from Next JPMorgan & question comes Sokel Co. Chase with

Your line is open. now

Judah Sokel

I ask the question wanted on to Market Intelligence.

that guys usage. but You sales mentioned drove the also record COVID-XX lengthened cycle, the pandemic

might if that structured secular, round a you in that that elaborate Q&A, could I we last your so do are out what are Intelligence the of and you maybe long the of platforms? was how cycle usage and at perhaps of record wondering more usage terms can about record in can so And used, sales color to that contracts looking we best you but little perhaps in a and talked those greater bit the with it Market owe if on just earlier monetize whether how

Ewout Steenbergen

the you Feeds look the to Judah. usage, business. call. Yes, give Data you let welcome an me course, And if at of And example

So example Data an measure this respect moment. is that downloads we high to this - with data interest for and the all-time business the Feeds at at of in client's at feeds

at measure example being So that on is and high a see level. desktop very of a also usage usage see products that our great where we we We high. the being numbers usage very

usage look very benefit we across obvious a we being at not see is time, there has of take can the come for discussions even a this this been of period products, going we ultimately, translating at and but it in positive longer out things that. the high. if our of those clearly, process our to sales Intelligence reasons, That more we in the Market way immediately contribute benefits customers prove in be good So only the time is, board is of how that period because because were and lengthened, can help very this time commercial

with customers we Market perspective overall, overall Intelligence. what So our from in we see pleased are usage an interaction in very

Judah Sokel

saw base? is into recession, we that go other economic terms ratings you. from defaults in major there emerged and your longer and not this and there's as all wave one elongated second to if did to just review - happen you question. revenue us challenge companies bankruptcies. think What thinking period would but perhaps what scenarios it a would can new I'm bankruptcy we we're obviously comes a Thank more of of hoping don't an see with restructuring Understood when we obviously well? to When Ratings, and liquidation

Ewout Steenbergen

is cycle, downturn, a see away a you restructurings, go and there cycle, the is sometimes it's taken a particular. you gas it pipeline there oil When seen business doesn't this - seeing GDP that companies go saw true your now, M&A it's months issuance. clearly last of the get our and one the companies disappears. when bond, down, we because you that Yes, healthcare of increase that of there most important we're have typical down the always a where But is do four different. know at our growth, of and an drivers into huge interesting see same It's but it see of not question, in that been - time a bankruptcy, is bond completely sometimes unless and right GDP in to we've is the our activity we're whenever expecting we said have in liquidation over, slowed in you once bond

directly. activity of the they're because going oil and or revolver once to the to markets go deal, and gas has activity distressed of M&A back actually Some loan the we or to M&A the actually but draws expect the is something to bank restructure debt down complete that a that they're going

there that downturn, at really even debt finance to in globally GDP once is there to very low issuance last shrunk it of quarter different look the overall, debt structured continues activity related last industry although so seen seeing their a the in many debt thing of and restructuring the four the pipelines, is it been the US in finance, and down the see XX%. you've I'd and say cetera is if of et is it's as finance stay a what - it's growth, through XX% banks we very, So growth, we months number of are in times, issuers, a lot structured was has structured types final down number debt, in even instruments. what The the

there In class Europe, not the of issuance there one asset in fact, transaction. were CMBS some was even

So activity et a wanting structured corporations to while cycle. start that's we But are a manage recovery balance critical there the their structured some finance a It's financial believe after management, at weak finance, of of point going where that sheets we've seen think institutions, will cetera, very a asset corporate be as management finance and we asset really again liability well. to tool.

eventually structured even finance starts recently, again, it's think weak do been though recovering incredibly we also again. So

Operator

Mcveigh from We take with will Kevin now Suisse. question our final Credit

is line Your now open.

Kevin Mcveigh

in where I know I integration where the are it and the want about across there's to us be the outsized on of we is both Kensho S&P? revenue expense you think across give but to sure evolution way in enterprise? the guess, side, to I impact a sense going

Ewout Steenbergen

giving question, for for company. you we Kevin, the that you way. the that Yes, want working omni lot a it It marketplace, to great it always Market-on-Close call what within every company it's is are been in entity Kensho is is helping, if Kensho catalyst out hearing a very if is are linking, a acquisition helping an examples with of couple with speak is and because the and in Platts, in the with And if as of where is about search. data a it there of positive change is enthusiasm really I a innovation has the overall

present overall really two those debt and have is recently those in value in-flight, initiatives bit present overall paid net for we keeping years several all overall helping track we value where price going have are of is again What the the the year-end are Kensho many, also have that of what we and We benefit net over on business refreshed Ratings contribution initiatives a off justify acquisition is Kensho the and that at the and there initiatives we that many ago. said of company. the examples

I'll over by right assets billion, the example positive the we now. give you another very what economy $X indexed end, and exceeded So that the development Kensho new index mentioned at

really what company. and So is this we many take within efficient advantage initiatives old having capability the of like

Kevin Mcveigh

proxy this is And towards one year? follow-up, parts the we around of quick you on way IG debt maybe just outlook allocation buyback some e-side M&A stack there or track the and for then of of anything about the half just any corporate as think for other that the folks a the as back

Doug Peterson

to their models, how what on we pipeline desks is the own some stay institutions, clearly the of companies important models, are us very terms look they close the that our different M&A to factors believe are of of be and capital allocation debt teams markets ability our what the seeing capital in to understand the as of is. as banks are financial those evolution well what of Well, for needs going to debt. of at understanding the for their It's the

are different forecast And to many to tools, be. try issuance to of use what when so these going we is the

them a We and closely also for to rates X and look debt of at time. companies as that we investment very, just debt seen issuing recently very year rates grade long both low low and X.X% interest debt haven't spreads, we've XX as as and interest not for seen some

rate story. below you been X%. I ever Just bonds were X%, to one Recently, rate lowest the interest - some mortgage mortgages they've know well down other were even mortgages mean as below

we also the municipalities to And are doing how when are it up are their what to and use understanding to the their way while products, our at are rates, structured all different doing, their financial balance the governments institutions cetera. sheet, with people factors interest - come they doing forecast structured manage balance looking and of Ratings sheets allocate corporations cash, what to might team. Those et comes look with resources across so

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Operator

PDF replay two now A this is about with for in of downloading the audio version investor.spglobal.com. slides morning's webcast available hours. presenters' from be will and slides concludes of available for call. Replays website call we That the maintained entire The of thank participating S&P for month. you telephone will and The for year. Global, Global's be S&P a one good day. audio on only maintained be On you will one wish behalf

S&P Global (SPGI) 28 Jul 202020 Q2 Earnings call transcript