BIIA member Outsell Inc. has issued its 2007 report on the Credit & Financial Information Services (C&F).  According to Outsell, the C&F sector enjoyed unabated growth of 11% against total content industry growth of 6.6%.  The C&F segment accounts for US$ 40.5bn in revenue compared to an industry total of US$ 387bn.  There are a number of factors which contributed to such an exceptional performance.  During the first half of 2007 the C&F segment enjoyed a high demand in information services, relatively high M&A activity and above average growth rates in international revenue.  In addition the fall of the US Dollar contributed to a foreign exchange gain of approximately 3.4%; therefore the real growth rate is down to 7.6% (compared to 12.1% in 2006).   The excellent results of the first half of 2007 mask to some extent the debacle that unfolded at the consumer credit information and credit rating segment due to the credit crunch.  A summary of Outsell’s report is posted on page 12

Based on Q1 and Q2 results of consumer credit information suppliers and the credit rating agencies the growth party appears to be over, at least for the time being.  After several years of unprecedented growth, consumer credit information companies and rating agencies are now bearing the brunt of the credit crunch.  Management of rating agencies and consumer credit information companies have expressed pessimistic outlooks for the remainder of 2008 and many believe the effects of the credit crunch to linger on until 2009.  How the pains in the financial sectors will play out for the larger players in the C&F segment, Bloomberg and Thomson Reuters has yet to be seen. 

In the BIIA Forum 2008 (January) several key note speakers presented the view that the credit crunch is likely to be protracted, will have severe implications on lending (consumer & business credit) and will eventually impact consumer and businesses spending.  Unfortunately all of which has now become a reality and the consequences of the credit crunch will be played out for some time.

BIIA Newsletter July / August 2008 Issue