S&P Global Inc at JPMorgan Ultimate Services Investor Conference Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Andrew Steinerman - JP Morgan - Analyst : Right. So I think what I interpret from what you just said is you see more than one way to hit the revenue synergy targets, right?

Question: Andrew Steinerman - JP Morgan - Analyst : Right. I think kind of a theme that I've been listening to you carefully is operating more across the enterprise. And when I think about revenue synergies, I really think of two ways to get at revenue synergies, and I'm sure you're going to have more than two, but mine would be cross-selling across divisions. And then the second, which I think is more difficult, is joint product development across divisions. Maybe there's more. Do you feel like, when you're looking at the remaining revenue synergies to be realized, that it's more about the first cross-selling across divisions? Or are we going to see more joint product development like you've already seen with IHS and Platts?

Question: Andrew Steinerman - JP Morgan - Analyst : Could you give me an example within MI with joint product development with one of the other divisions that is meaningful?

Question: Andrew Steinerman - JP Morgan - Analyst : Okay. How about a discussion about the elections in the Ratings business? My question, I know we're only a week post election with the Republican sweep. Is this simply Republicans are more pro business, more pro M&A? And so this will be good for the credit ratings cycle and credit ratings issuance? Or is it really tempered by the potential of tariffs?

Question: Andrew Steinerman - JP Morgan - Analyst : So I didn't quite get it. Do you feel like we have to wait and see? Or is there a more hopeful feeling amongst your team at this juncture?

Question: Andrew Steinerman - JP Morgan - Analyst : I know. We can. No problem. Okay. So I love the press releases, by the way, of S&P, particularly watching Cap IQ. Our team is a Cap IQ user in addition to Bloomberg, just full disclosure.

Question: Andrew Steinerman - JP Morgan - Analyst : So ChatIQ was an announcement this week. And my question is a real simple one. How do you see S&P commercializing generative AI capabilities? Do you feel like it's going to be enhanced capabilities on existing products, so it's innovation and leads to more pricing of existing products over time? Or do you feel like there's an opportunity to have separate pricing for generative AI products, either in the financial desktops and feed space or some other space that you're currently addressing?

Question: Andrew Steinerman - JP Morgan - Analyst : Talk about the change of leadership that you just implemented with Saugata, very successful President of the CI division, also previous CFO of MI. How long do you think it would take him to make a difference in MI?

Question: Andrew Steinerman - JP Morgan - Analyst : Right. So if you look at the information services data book, all the financial desktops and feeds business growth has decelerated. Do you feel like Saugata has much an opportunity to accelerate the MI book of business without an end user recovery? Or do you think it really is tied to the kind of underlying kind of end user cycle, which it does seem to be more of a headwind this year for the sector?

Question: Andrew Steinerman - JP Morgan - Analyst : But did you -- I think you've said you've seen some green shoots, right?

Question: Andrew Steinerman - JP Morgan - Analyst : And what do you mean by that? Like is that -- do you mean like the end customers are adding headcount? Like what does the green shoots mean? Is that your sales pipeline? I just don't know what the green shoots point to?

Question: Andrew Steinerman - JP Morgan - Analyst : Busy already.

Question: Andrew Steinerman - JP Morgan - Analyst : So we're going to switch gears. We're going to talk about private credit. So you guys have worked very hard on solutions around private markets and you disclosed revenues that were up 22%, which is amazing, $134 million. When you look at your full effect of private credit, private markets, is it all additive? Or is there still private credit and private market activity going on that's just not rated so there's both the positive, the $134 million, but there's also still some negative because things are getting done without a rating? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 14, 2024 / 3:50PM, SPGI.N - S&P Global Inc at JPMorgan Ultimate Services Investor Conference

Question: Andrew Steinerman - JP Morgan - Analyst : Are you able to track that well?

Question: Andrew Steinerman - JP Morgan - Analyst : And there will always be things that if they didn't go to private credit would have went to a bank loan that was unrated to begin with.

Question: Andrew Steinerman - JP Morgan - Analyst : Meaning the smaller stuff.

Question: Andrew Steinerman - JP Morgan - Analyst : Questions from the audience? There must be questions here. Go ahead. Take somebody, be brief. Unidentified Participant I'm Ram from TD Asset Management. Can you talk about the elongated sales cycles? And are you seeing any sort of pushback from your customers on pricing when you're doing cross-selling or upselling opportunities?

Question: Andrew Steinerman - JP Morgan - Analyst : Any last question? I could ask the last question if everyone is timid. Okay. Martina, of course, I'm going to invite you to come back, save the date for next November. My question is when we're sitting here again in next November, what would have transpired that we're not -- really appreciate it yet, but is on your agenda and really could start building momentum at S&P that we haven't yet discussed?

Question: Andrew Steinerman - JP Morgan - Analyst : Okay. Martina, thank you so much for the dialogue. If anyone wants to grab an Info Services data book, they're up here. And next year's date is Tuesday, November 18, mark your calendars.