Core Viewpoint - The downgrade of the U.S. sovereign credit rating by major credit rating agencies signals that U.S. government debt may no longer be considered a risk-free asset [2][3]. Group 1: Credit Rating Downgrade - Moody's downgraded the U.S. sovereign credit rating from Aaa to Aa1, with a stable outlook, following similar actions by S&P Global Ratings and Fitch Ratings [2][3]. - The downgrades are closely linked to the unsustainable nature of U.S. government debt, with the debt-to-GDP ratio projected to rise from 6.4% in 2024 to 9% by 2035 [2][3]. - Mandatory spending, including interest payments, is expected to account for 78% of total government spending by 2035, up from 73% in 2024 [2]. Group 2: Market Implications - The current downgrade is unlikely to trigger immediate panic in the markets, unlike the 2011 downgrade, due to relaxed conditions for eligible collateral [3]. - However, the downgrade increases risk exposure in the market, as the sustainability of U.S. fiscal policy remains a concern [3][4]. - If U.S. debt is no longer viewed as a safe asset, it could lead to a steep rise in U.S. Treasury yields, increasing the risk premium for global financial markets [4]. Group 3: Global Economic Impact - The downgrade could hinder global economic growth and raise liquidity costs for emerging economies, increasing their risk pressures [4]. - The loss of the highest credit rating for U.S. debt may destabilize the global financial market, which relies on U.S. Treasuries as a stability anchor [4][5]. - The need for bipartisan cooperation in U.S. fiscal policy is emphasized to restore the sovereign credit rating to its highest level [4][5]. Group 4: Investor Considerations - Investors holding significant dollar-denominated assets are advised to conduct risk assessments and adjust their asset allocations accordingly [5]. - The downgrade serves as a warning for the U.S. government to address its fiscal responsibilities and move towards a sustainable fiscal path [5].

Core Viewpoint - The article discusses the recent downgrade of the United States' credit rating by Moody's, marking the first time all three major credit rating agencies have downgraded the U.S. from its previous AAA status due to rising government debt and fiscal challenges [1][2]. Group 1: Credit Rating Downgrade - Moody's has downgraded the U.S. sovereign credit rating from Aaa to Aa1, with a stable outlook, following similar actions by S&P and Fitch [1][2]. - The downgrade is primarily attributed to increasing government debt and the rising proportion of interest payments relative to revenue [2][5]. Group 2: Fiscal Deficits and Debt Levels - The U.S. fiscal deficit has approached $2 trillion annually, with total nominal debt exceeding $36 trillion, representing over 6% of GDP, which is the highest in peacetime history [2][5]. - The U.S. Treasury Secretary acknowledged that the country is on an unsustainable fiscal path, with projections indicating that the federal deficit could reach nearly 9% of GDP by 2035 [5][7]. Group 3: Rising Interest Costs - High interest rates have led to increased debt servicing costs, with net interest expenditures expected to rise by approximately 130% by 2024 compared to 2019 levels [5][8]. - The average interest rate on outstanding U.S. debt is projected to be 3.324% in 2024, with total debt burden reaching 98% of GDP [5][8]. Group 4: Economic Implications - The trade war initiated by Trump has resulted in weakened economic conditions, leading to decreased consumer spending and increased corporate costs, which in turn affects government revenue and debt repayment capacity [8][11]. - The Yale Budget Lab estimates that proposed tax legislation could increase government debt by $3.4 trillion over the next decade, potentially reaching $5 trillion if certain temporary provisions are extended [8][12]. Group 5: Market Reactions - Following the downgrade announcement, the S&P 500 index ETF experienced a decline of over 1%, while the yield on the 10-year U.S. Treasury bond rose from 4.44% to above 4.48% [13][15]. - The article suggests that rising bond yields could lead to increased pressure on the U.S. government to address fiscal challenges, potentially impacting future economic policies [15].

Financial Performance - In 2024, revenue increased by 14%, and the adjusted operating margin expanded by 310 basis points to 49% [12] - The company returned $4.4 billion to shareholders in 2024 through dividends and share repurchases [13] - In the first quarter of 2025, over $900 million was returned to shareholders through dividends and repurchases [14] Business Lines and Key Metrics - The energy transition and sustainability revenue grew to $359 million in 2024, indicating strong demand in this area [22] - The company is focusing on five key areas for investment: benchmarks, private markets, enterprise data, GenAI, and energy transition [15] Market Data and Key Metrics - The company acknowledges broad market factors such as trade conflicts and supply chain risks that may impact future performance [14] - There is a growing need for trusted benchmarks across debt, equity, and commodity markets due to geopolitical and macroeconomic risks [16] Company Strategy and Industry Competition - The company plans to separate its mobility division into a standalone public company, indicating a strategic shift [14] - The focus on GenAI is expected to enhance productivity and improve customer workflows, positioning the company favorably in a competitive landscape [21] Management Commentary on Operating Environment and Future Outlook - Management expressed optimism about the company's ability to navigate multiple scenarios and support clients amid changing market conditions [15] - The CEO emphasized the importance of fostering a culture of empowerment and innovation within the company [23] Other Important Information - The board approved a 5.5% increase in the company's regular dividend, continuing a 52-year history of dividend increases [13] - The company has established an enterprise data organization to better connect its vast datasets for enhanced client value [20] Q&A Session Summary - No shareholder questions were submitted during the Q&A session [53][54]

Annual Shareholders Meeting Unlocking Potential, Together May 7, 2025 Richard E. Thornburgh Chairman Martina Cheung President and CEO Tasha Matharu Deputy General Counsel & Corporate Secretary Tasha Matharu Deputy General Counsel & Corporate Secretary 2 2 2025 Annual Shareholders Meeting Rules of Conduct To submit questions during the Annual Meeting, please log in to the meeting as a shareholder using your 15-digit control number and follow the instructions. https://meetnow.global/MTWC7R7 3 –Shareholders ar ...

Core Insights - The S&P Global Australia Composite PMI decreased from 51.6 to 51 in April 2025, indicating a slight reduction in the growth rate of Australia's private sector output, which has been increasing for seven consecutive months [1] Group 1: Economic Indicators - The number of new export orders in Australia's private sector declined again in April, but the overall growth rate of new orders reached its highest level since May 2022 [1] - The average input costs in Australia's private sector grew at the fastest pace since September of the previous year, leading businesses to raise selling prices to the highest level in nine months [2] - The services sector's business activity index fell from 51.6 to 51, marking the 15th consecutive month above the 50-point threshold, indicating ongoing expansion [2] Group 2: Business Sentiment and Employment - Despite the increase in business activity, the optimism level among private enterprises remains low, falling to a five-month low and below historical averages [1][2] - The services sector experienced a significant increase in new business and backlog of work, with the fastest growth in nearly three years, suggesting a positive outlook for the coming months [2] - Companies are continuing to hire at a steady pace to manage increased workloads, although concerns over trade uncertainties, particularly related to U.S. tariff measures, have dampened business sentiment [2]

Core Viewpoint - The U.S. government's tariff policy is creating significant uncertainty in the automotive industry, leading to increased costs for manufacturers and consumers, ultimately resulting in a projected decline in light vehicle sales by over 640,000 units by 2025 [1][6]. Group 1: Impact of Tariff Policy - The uncertainty caused by the tariff policy is one of the most challenging factors for the automotive industry, which typically makes decisions based on 10 to 20-year cycles rather than short-term [3]. - The tariff policy has artificially increased manufacturing costs, which are not linked to demand, raw material costs, or supply chain dynamics, but are ultimately borne by consumers [5]. Group 2: Sales Projections - S&P Global forecasts that the U.S. light vehicle sales will decrease by over 640,000 units by 2025 due to the impact of the tariff policy [6]. Group 3: Manufacturing Adjustments - Adjusting the supply chain, such as relocating factories or replacing components, is a complex process that cannot be completed within a year [6]. - Establishing a new manufacturing facility in another country can take up to three years, including site selection and construction time, along with the establishment of local procurement and supplier networks [8].

Revenue and Profitability - Revenue for the three months ended March 31, 2025, increased by 8% to $3,777 million compared to $3,491 million in 2024[116] - Operating profit rose by 14% to $1,578 million, with an operating margin of 42% compared to 40% in the previous year[116] - Diluted earnings per share increased by 12% to $3.54 from $3.16 in 2024[116] - The increase in revenue was driven by growth across all reportable segments, particularly in Ratings due to higher structured finance revenue and increased issuance volumes in U.S. Public Finance[119] - Segment operating profit increased by 14% to $1,633 million in 2025, compared to $1,436 million in 2024[141] - Market Intelligence segment revenue grew by 5% to $1,199 million, with subscription revenue also increasing by 5% to $993 million[156] - Commodity Insights revenue increased by 9% to $612 million, driven by demand for market data and insights products[171] - Mobility revenue rose by 9% to $420 million, with subscription revenue increasing by 10% to $343 million[175] - Operating profit for Mobility increased by 22% to $86 million, primarily due to revenue growth[175] Revenue Composition - Subscription revenue accounted for 50% of total revenue, totaling $1,898 million, while non-subscription/transaction revenue was $850 million, representing 22% of total revenue[129] - Transaction revenue increased by 7% to $620 million, while non-transaction revenue rose by 10% to $529 million[161] - U.S. revenue grew by 12% to $683 million, while international revenue increased by 3% to $466 million[161] - Total billed issuance for the first quarter was $1,083 billion, a 9% increase from $993 billion in 2024[165] - Asset-linked fees increased by 18% to $288 million, while subscription revenue grew by 7% to $76 million[182] - U.S. revenue rose 14% to $361 million, and international revenue increased by 18% to $84 million[182] Expenses and Cash Flow - Total expenses increased by 5% to $2,210 million, with operating-related expenses rising by 4% to $1,153 million[128] - Operating-related expenses increased by 4%, primarily due to higher compensation costs from annual merit increases and additional headcount[135] - Selling and general expenses rose by 7%, with a 10% increase when excluding IHS Markit merger costs, driven by higher compensation costs and strategic initiatives[136] - Free cash flow decreased by 4% to $816 million compared to $851 million in the first three months of 2024[206] - Cash used for investing activities increased to $79 million in Q1 2025 from $20 million in Q1 2024[187] - Cash used for financing activities rose by 68% to $1,103 million in Q1 2025, primarily due to increased share repurchases[187] - The company purchased 1.0 million shares for $650 million in Q1 2025, compared to $500 million for the same number of shares in Q1 2024[193] Financial Position and Taxation - As of March 31, 2025, cash, cash equivalents, and restricted cash totaled $1,469 million, a decrease of $197 million from December 31, 2024[186] - The company maintains a strong financial position with sufficient cash flows to meet operational needs and ongoing investments[185] - The effective income tax rate increased to 21.7% in 2025 from 18.8% in 2024, primarily due to a change in the mix of income by jurisdiction[150] Strategic Initiatives and Market Conditions - The Mobility segment is set to be spun off into a new publicly traded company, expected to be completed within 12 to 18 months[115] - The company anticipates a pre-tax gain of $220 million from the sale of the OSTTRA joint venture, expected to close in the second half of 2025[146] - The company entered into an agreement to acquire ORBCOMM's AIS data services business, expected to close in 2025, enhancing maritime visibility[153] - The company is focused on the anticipated separation of its Mobility segment into a standalone public company, which may affect its operational synergies and overall value[212] Risks and Regulatory Environment - The company anticipates potential impacts from worldwide economic conditions, including slower GDP growth and inflation, which could affect its future results[210] - The company is exposed to market risks related to changes in foreign exchange rates and interest rates, with operations in foreign countries where local currencies are used[213] - The company has entered into foreign exchange forward contracts to mitigate adverse fluctuations in foreign exchange rates as of March 31, 2025, and December 31, 2024[213] - The company acknowledges the potential impact of competitive products, including those utilizing generative artificial intelligence, on its market position[210] - The company is actively monitoring the evolving regulatory environment, which could affect its business operations and compliance requirements[210] - The company cautions against placing undue reliance on forward-looking statements due to inherent risks and uncertainties in the business environment[211] Accounting and Estimates - The company has not experienced any material changes to its critical accounting estimates since the last Form 10-K, which include revenue recognition and valuation of long-lived assets[207] - The company has not entered into any derivative financial instruments for speculative purposes, maintaining a conservative approach to risk management[213] - The company emphasizes the importance of maintaining adequate safeguards to protect confidential information and data, which is critical for its operations[210]

Financial Data and Key Metrics Changes - Total revenue increased by 8% year over year, with subscription product revenue growing by 7% [7][24] - Adjusted diluted EPS grew by 9%, and there was a year-over-year margin expansion of 240 basis points [7][24] - The company returned over $900 million to shareholders through dividends and repurchases in the first quarter [7] Business Line Data and Key Metrics Changes - Market Intelligence revenue increased by 5%, with data analytics and insights products growing by 74% year over year [37] - Ratings revenue grew by 8%, with transaction revenue increasing by 7% and non-transaction revenue rising by 10% [40][41] - Commodity Insights revenue increased by 9%, driven by strong growth in Energy and Resource Data and Insight [42] - Mobility revenue rose by 9%, with dealer revenue increasing by 11% [45] Market Data and Key Metrics Changes - Build issuance increased by 9% year over year, driven by structured finance and bank loans [10] - Active users across Capital IQ platforms, Platts Connect, and Automotive Mastermind increased by 23% year over year [12] - The company expects build issuance to be flat year over year, down from initial expectations of low single-digit growth [20] Company Strategy and Development Direction - The company plans to separate its Mobility division into a standalone public company, expected to be completed in 12 to 18 months [8][25] - Focus on innovation in data benchmarks and artificial intelligence, with new products launched in various divisions [22][23] - The company aims to enhance strategic focus and maximize shareholder value through the separation [25][28] Management's Comments on Operating Environment and Future Outlook - Management noted unpredictable market movements, geopolitical risks, and fluid regulatory landscapes impacting business [12][18] - There is optimism for long-term growth despite near-term headwinds, with recurring revenue accounting for approximately 75% of total revenue [15][19] - The company expects lower global GDP growth and higher inflation than previously forecasted [19] Other Important Information - The company plans to host an Investor Day in November to provide updates on the separation and multiyear strategy [10][28] - The company has seen significant growth in the user base of CARFAX Car Care, now serving over 46 million consumers [29] Q&A Session Summary Question: Timing and implications of the Mobility announcement - Management indicated that the decision was based on a thorough assessment and is expected to create long-term shareholder value [56][58] Question: Confidence in Market Intelligence revenue acceleration - Management expressed confidence due to stable retention rates and a strong sales pipeline, expecting stronger performance in the second half of the year [62][64] Question: Expense management levers - Management discussed monitoring headcount, incentive compensation, and third-party spending as key levers for managing expenses [67][68] Question: Issuance guidance and market conditions - Management expects build issuance to be flat for the year, with potential for opportunistic issuance in the second half [72][76] Question: Share count and M&A ambitions - Management confirmed no plans for transformative M&A, focusing instead on high-quality organic growth opportunities [80] Question: Performance of private credit ratings - Management noted strong demand for ratings in private credit, but tempered expectations for growth in the remainder of the year due to tough comparisons [86][87]

Core Insights - The S&P CoreLogic Case-Shiller Indices reported a 3.9% annual gain in U.S. home prices for February 2025, a slight decrease from 4.1% in January 2025 [1][2][3] - The 10-City Composite Index saw a 5.2% annual increase, down from 5.4%, while the 20-City Composite posted a 4.5% increase, down from 4.7% [2][3] - New York led the 20 cities with a 7.7% annual increase, followed by Chicago at 7.0% and Cleveland at 6.6%, while Tampa experienced the lowest return with a decline of 1.5% [2][4] Year-over-Year Trends - The U.S. National Home Price NSA Index recorded a 3.9% annual return for February, reflecting a cooling trend in home price growth [2][3] - The 10-City Composite Index increased by 5.2% year-over-year, and the 20-City Composite Index rose by 4.5% [2][3] Month-over-Month Trends - Month-over-month, the U.S. National Composite Index increased by 0.4%, the 10-City Composite by 0.8%, and the 20-City Composite by 0.7% [3][5] - Seventeen out of twenty metro areas reported positive monthly price gains, reversing recent seasonal weakness [5] Regional Performance - New York, Chicago, and Cleveland showed the highest annual gains, while Tampa continued to struggle with a year-over-year decline [4][5] - Markets in the Sun Belt that previously saw rapid appreciation are adjusting due to higher financing costs and affordability constraints [4][6] Affordability and Supply Issues - Mortgage rates remain in the mid-6% range, contributing to affordability challenges, yet limited housing supply is supporting a gradual upward trend in home prices [6] - Existing homeowners are reluctant to sell due to low pandemic-era mortgage rates, exacerbating supply shortages [6]

Financial Performance - Q1 2025 - S&P Global's revenue increased by 8% from $3491 million in 1Q 2024 to $3777 million in 1Q 2025[40] - The company's operating profit increased by 10% from $1738 million in 1Q 2024 to $1920 million in 1Q 2025, with the operating margin increasing by 100 bps to 508%[40] - Net income (less NCI) increased by 7% from $1258 million in 1Q 2024 to $1344 million in 1Q 2025, and diluted EPS increased by 9% from $401 to $437[40] - Adjusted Free Cash Flow, excluding certain items, decreased by 11% from $1018 million in 1Q 2024 to $901 million in 1Q 2025[40] Segment Performance - Q1 2025 - S&P Global Market Intelligence revenue increased by 5% to $1199 million, with recurring revenue accounting for 953% of the total[71] - S&P Global Ratings revenue increased by 8% to $1149 million, with transaction revenue up 7% to $620 million and non-transaction revenue up 10% to $529 million[79] - S&P Global Commodity Insights revenue increased by 9% to $612 million, with recurring revenue accounting for 794% of the total[86] - S&P Global Mobility revenue increased by 9% to $420 million, with recurring revenue accounting for 817% of the total[92] - S&P Dow Jones Indices revenue increased by 15% to $445 million, with recurring revenue accounting for 817% of the total[98] Updated 2025 Guidance - The company revised its revenue growth guidance from 5%-7% to 4%-6%[110, 116] - The company revised its operating profit margin guidance from 415%-425% to 425%-435%[110] - The company revised its diluted EPS guidance from $1420-$1445 to $1460-$1510[110]