BIIA Co-founder member Outsell Inc. recently published a report providing a deeper analysis of the credit rating agencies (CRA) sub-segment. This report examines the current competitive positioning of the leaders and identifies potential disruptions to their stronghold. It highlights budding yet real threats to incumbents, examines firms vying for investors’ surveillance ratings budgetary dollars, and touches on legal and regulatory changes as they relate to shifting sands within this space. The report covers the following key topics:
- Sorting of credit rating agencies into four categories: the Big Three CRAs, small and medium CRAs, local CRAs, and independent credit research providers ;
- Key players in each of those categories;
- Market size and share of major players and key trends in each category;
- Implications for other players in the market;
- Outsell’s leaderboard of companies positioned to lead in the market.
According to Outsell’s report the global market for credit rating services is estimated at US$5.5bn of which the three big players: Standard & Poor’s Ratings, Moody’s Investor Service and Fitch Ratings hold 67% market share.
Outsell’s Director and Lead Analyst Elizabeth Mason has repeatedly stated that small rating agencies and independent research providers are shaking up legacy credit rating models by offering alternative monitoring services and benchmarks rich in investment banking type of calculations.