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Credit spreads, a crucial gauge of the health of the corporate sector, were relatively tight in the third quarter, creating a favorable environment for bond issuance. Sign up here. With corporate bond issuance strong, the September quarter rounded out to be a robust one for ratings agencies. S&P now expects annual revenue growth of 7% to 8%, compared with its prior forecast of 5% to 7%. Annual adjusted EPS is expected in the range of $17.60 and $17.85, higher than its previous forecast of $17 and $17.25. Revenue at S&P's ratings business jumped 12% to $1.24 billion in the three months ended September 30 from a year earlier. Analysts expect the strong bond issuance momentum to carry forward, driven by M&A activity pickup, looming debt maturities and increasing data center funding. PORTFOLIO SIMPLIFICATION S&P announced on Thursday that it would also divest its Enterprise Data Management and thinkFolio businesses, both housed within the market intelligence division, in the coming months. Market intelligence, S&P's biggest business, was another bright spot as its revenue jumped 6% to $1.24 billion in the third quarter. S&P had last year rejigged the leadership team in the market intelligence business. Earlier this month, it struck a $1.8 billion deal for With Intelligence, in a move to deepen its private markets push. Its indices arm also shone as higher market levels boosted asset-based revenues. The business reported an 11% jump in quarterly revenue. Reporting by Arasu Kannagi Basil in Bengaluru; Editing by Shreya Biswas
