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Oct 30 (Reuters) - S&P Global (SPGI.N), opens new tab raised its annual earnings forecasts on Thursday, as robust bond issuance activity drove growth in its ratings business, sending its shares up 2.4% before the bell. 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. With corporate bond issuance strong, the September quarter rounded out to be a robust one for ratings agencies. Advertisement · Scroll to continue 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. Ratings agency Moody's (MCO.N), opens new tab earlier this month also raised its annual earnings forecast. PORTFOLIO SIMPLIFICATION S&P has also been working actively to streamline its business. The company announced in April that it would spin off its mobility business and, earlier this month, it sold its OSTTRA joint venture to asset manager KKR (KKR.N), opens new tab. Advertisement · Scroll to continue 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. Ad Break Coming Up NEXT StayNext OffEnglish 180p288p360p480p540p576p720pHD1080pHDAuto (180p) About ConnatixV2127676363 About ConnatixV2127676363 Continue watchingafter the adVisit Advertiser websiteGO TO PAGE Reporting by Arasu Kannagi Basil in Bengaluru; Editing by Shreya Biswas Purchase Licensing Rights Get the key points from this story with Reuters AI
