H. V. and H. W. Poor Co.

S&P Global Ratings
Company type	Division
Industry	Financial services, Credit rating agency
Predecessor	Standard & Poor's Corp.
Founded	1860
Headquarters	New York City, United States
Area served	Worldwide
Parent	S&P Global

Adapted from the English Wikipedia article H. V. and H. W. Poor Co., available under CC BY-SA 4.0Updated 30 November 2025

S&P Global Ratings—previously known as Standard & Poor's or simply S&P—is a prominent American credit rating agency operating as a division within S&P Global. It specializes in delivering financial analysis and research on equities, bonds, and commodities. Among the Big Three credit-rating firms, which include Moody's Ratings and Fitch Ratings, it stands as the largest. The company’s main office is located at 55 Water Street in Lower Manhattan, New York City.

Corporate history

The firm traces its roots back to 1860 when Henry Varnum Poor authored History of Railroads and Canals in the United States, a comprehensive compilation of financial and operational information on American railroads. In 1868, he partnered with his son, Henry William Poor, to establish H.V. and H.W. Poor Co., which began publishing annually updated reference works such as Poor's Manual of the Railroads of the United States and Poor's Directory of Railway Officials.

In 1906, Luther Lee Blake founded the Standard Statistics Bureau, aiming to offer financial data on companies outside the railroad sector. This bureau utilized 5-by-7-inch cards to facilitate more frequent updates compared to yearly publications.

The year 1941 saw Paul Talbot Babson acquire Poor's Publishing and merge it with Standard Statistics, creating Standard & Poor's Corp.. Later, in 1966, The McGraw-Hill Companies purchased the company, thereby broadening McGraw-Hill’s footprint in the financial information industry.

Credit ratings

Functioning as a credit rating agency (CRA), S&P Global Ratings assigns credit ratings to debt issued by both public and private sector entities, including governmental bodies and agencies. It holds the status of a nationally recognized statistical rating organization (NRSRO) as designated by the U.S. Securities and Exchange Commission.

Long-term credit ratings

S&P evaluates borrowers on a scale ranging from AAA down to D, incorporating intermediate gradations between AA and CCC (such as BBB+, BBB, BBB−). Furthermore, it may issue "credit watch" notifications signaling possible upgrades (positive), downgrades (negative), or stability in ratings.

Investment Grade

AAA: Represents an exceptionally strong ability to fulfill financial obligations; this is the highest rating tier.
AA: Indicates very strong capacity, marginally below AAA.
- AA+: Corresponds to Moody's Aa1.
- AA: Matches Aa2.
- AA−: Equivalent to Aa3.
A: Denotes a strong capacity but with increased sensitivity to economic fluctuations.
- A+: Comparable to A1.
- A: Equivalent to A2.
BBB: Signifies adequate capacity; however, more susceptible under adverse economic conditions.

Non-Investment Grade (speculative-grade)

BB: Less vulnerable in the short term than lower-rated entities but faces significant uncertainties.
B: More susceptible than BB-rated entities but currently capable of meeting commitments; adverse conditions could impair this capacity.
CCC: Indicates vulnerability and reliance on favorable circumstances.
CC: Reflects high vulnerability.
C: Denotes extreme vulnerability; possibly undergoing bankruptcy proceedings but still honoring obligations.
R: Subject to regulatory oversight that may prioritize certain obligations.
SD: Has selectively defaulted on some financial obligations.
D: Represents default on obligations; likely to default on most or all commitments.
NR: Not rated.

Short-term issue credit ratings

The company assigns ratings to individual issues ranging from A-1 to D. Within the A-1 category, a plus sign (+) denotes an exceptionally strong likelihood of fulfilling financial obligations. The evaluation incorporates factors such as country risk and the currency used for repayment, which are reflected in the assigned rating.

A-1: very strong ability to fulfill financial obligations
A-2: adequate capacity but vulnerable to unfavorable economic shifts
A-3: capacity likely to deteriorate under adverse economic conditions
B: highly speculative; currently able to meet obligations but with substantial uncertainty
C: at risk of default; reliant on favorable conditions to honor commitments
D: defaulted on payments or undergoing bankruptcy proceedings

Governance scores

Standard & Poor’s has employed multiple approaches to evaluate corporate governance, aiming to safeguard investors from losses related to governance failures or inadequate value creation.

CGS scores

The Corporate Governance Scores (CGS), launched in 2000, evaluated governance practices of publicly traded U.S. companies upon their request. These scores were generally confidential but occasionally disclosed by the firms themselves. S&P discontinued issuing CGS in 2005.

GAMMA scores

Governance, Accountability, Management Metrics and Analysis (GAMMA) scores were designed for equity investors in emerging markets, emphasizing non-financial risks and governance-related risks. While S&P stopped providing standalone governance scores in 2011, governance considerations remain integrated within credit ratings.

Management and Governance criteria

In November 2012, S&P introduced a framework for evaluating management and governance factors affecting creditworthiness in insurance companies and non-financial firms. These evaluations form part of a comprehensive enterprise risk management review and assess management and governance strength on a spectrum from weak to strong, based on positive attributes and identified deficiencies.

Downgrade of U.S. long-term credit rating

On August 5, 2011, subsequent to the Budget Control Act of 2011, S&P lowered the United States' long-term sovereign credit rating from AAA to AA+. This adjustment was driven by concerns that the fiscal consolidation measures were insufficient to stabilize medium-term debt trends and underscored diminished effectiveness and predictability in U.S. fiscal policymaking during challenging times. S&P expressed skepticism regarding Congress and the Administration’s ability to implement more extensive fiscal consolidation promptly.

The United States Department of the Treasury identified a $2 trillion miscalculation in S&P’s assessment of deficit reduction under the Budget Control Act, calling into question the reliability of the downgrade. Although S&P later admitted this error, it maintained that the mistake did not influence its rating decision, clarifying that projected U.S. net general government debt would be $20.1 trillion (85% of GDP in 2021) compared with an earlier estimate of $22.1 trillion (93% of GDP in 2021).

In 2013, the Department of Justice initiated a $5 billion fraud lawsuit against Standard & Poor’s related to its rating practices. This legal action sparked speculation about possible retaliation linked to the downgrade decision since Fitch and Moody’s faced no comparable charges. In April 2013, a court ordered that S&P be granted access to evidence held by the Department of Justice in this case.

Reduction of France's long-term credit rating

On November 11, 2011, S&P erroneously announced a downgrade of France's AAA credit rating. This mistake was strongly criticized by French authorities, who urged for enhanced oversight of private credit rating agencies. Subsequently, on January 13, 2012, S&P formally downgraded France’s rating from AAA to AA+, representing the first such reduction since 1975 for the continent’s second-largest economy. On that same date, S&P also lowered the credit ratings of eight additional European nations: Austria, Spain, Italy, Portugal, Malta, Slovenia, Slovakia, and Cyprus.

Publications

Since 1922, the firm has issued The Outlook, a weekly investment advisory newsletter tailored for both individual and professional investors. Another key publication is Credit Week, produced by Standard & Poor's Credit Market Services Group, which delivers in-depth analysis and updates on global credit markets and ratings. Subscribers also gain access to various editorials, investment insights, and market briefings covering sectors such as financial markets, corporations, industries, equities, bonds, funds, economic forecasts, and investor education.

Additionally, S&P Dow Jones Indices provides complimentary blogs including Indexology, VIX Views, and Housing Views that offer expert commentary and market perspectives.

Involvement in the 2008 financial crisis

Credit rating agencies like S&P faced significant criticism for their part in the 2008 financial crisis. A substantial share of high-risk loans within the collateralized debt obligation (CDO) market received AAA ratings—the highest possible grade. When the real estate bubble collapsed in 2007, numerous loans defaulted due to declining housing values and poor borrower credit quality. Investors who depended on these AAA ratings suffered notable losses or were left holding illiquid securities. For example, institutional investors incurred $125 million in losses on $340.7 million worth of Credit Suisse CDOs rated AAA by S&P.

Because S&P, Moody's, and Fitch are compensated by issuers to rate their debt instruments, they have been accused of conflicts of interest under a "pay-to-play" system that potentially undermines impartiality in ratings.

In 2015, Standard & Poor's agreed to pay $1.5 billion to settle lawsuits brought by the U.S. Justice Department, several states, and the California Public Employees' Retirement System over allegations that its inaccurate ratings misled investors during the crisis.

Controversy surrounding sovereign debt ratings

In April 2009, S&P called for "new faces" in the Irish government, a statement interpreted as meddling in democratic affairs. The firm later claimed its remarks were "misunderstood."

S&P admitted to a US$2 trillion miscalculation in its rationale for downgrading the United States' credit rating in 2011 but asserted this error "did not affect the rating decision."

Ruling by the Australian Federal Court

In November 2012, Federal Court Judge Jayne Jagot declared that: "A reasonably competent ratings agency would not have assigned a AAA rating to the Rembrandt 2006-3 CPDO under these conditions"; and "S&P’s AAA ratings for Rembrandt 2006-2 and 2006-3 CPDO notes were misleading and deceptive due to negligent misrepresentations made to prospective investors including Local Government Financial Services Pty Ltd and various councils. The AAA designation falsely implied that S&P had reasonable grounds and exercised due care in concluding that the notes’ ability to meet financial commitments was 'extremely strong,' which was untrue and known by S&P at the time."

Judge Jagot held Standard & Poor's jointly responsible alongside ABN Amro and Local Government Financial Services Pty Ltd.

Antitrust scrutiny

In November 2009, following a ten-month inquiry, the European Commission (EC) officially accused S&P of misusing its exclusive role as the sole issuer of international securities identification codes for U.S. securities. The allegation focused on S&P's practice of imposing licensing fees on European financial institutions and data providers. The EC characterized this conduct as "unfair pricing," emphasizing that these identification numbers are indispensable for activities such as regulatory compliance and transaction settlement, with no available alternatives.

S&P manages the CUSIP Service Bureau, which is the exclusive International Securities Identification Number (ISIN) issuer within the United States, operating under the authority of the American Bankers Association. The EC claimed that S&P exploited this monopoly by charging licensing fees for the use of U.S. ISINs to both (a) banks and financial service entities and (b) information service companies located in the European Economic Area (EEA). It further highlighted that similar organizations worldwide either refrain from charging fees or set them based on distribution expenses rather than actual usage.

External links

S&P Global Ratings
S&P Dow Jones Indices
Intro to Credit Ratings – Standard & Poor's
History of Standard & Poor's