Rating and credit information companies have experienced losses in shareholder value as a result of the credit crunch.  Most of them recovered somewhat, but their share prices are still performing below the DJI average. 

Most pronounced is the value destruction at Acxiom.  Its shares lost almost half of the value.  Subsequently its deal with Silver Lake Partners and ValueAct Capital collapsed, perhaps leading to another attempt by disgruntled shareholders to put the company into play.

Rating agencies took the brunt of the debacle with significant losses in shareholder value.  The effect on consumer information companies was the same.  Their mortgage related services suffer from lack of demand.

Nevertheless Equifax and Experian’s overall revenue was up largely due to a diversified services portfolio and acquisitions.  Without the latter the growth rates would have been in modest single digits.

Experian commented in a recent analyst meeting: “As the global credit crunch unfolded and conditions in the US mortgage market deteriorated, we saw a tougher revenue environment in our North American business during the first half.” (Experian’s financial year runs April to March)

Dun & Bradstreet’s share price suffered as well, but its share price movement was less volatile compared to its peer group and stayed within a 0 to -10% price range.

BIIA Newsletter October 2007 Issue