Business Irish

Monday 21 May 2018

S&P credit rating unit valued at €1.8bn as holding transferred to Dublin office

New York-based Standard and Poor’s is to create an unspecified number of managerial, analytical and support jobs in Dublining Photo: AFP/Getty
New York-based Standard and Poor’s is to create an unspecified number of managerial, analytical and support jobs in Dublining Photo: AFP/Getty
John Mulligan

John Mulligan

A €1.8bn valuation has been placed by global ratings agency Standard & Poor's on its European credit market services unit, after the entire shareholding in the entity was acquired by its new Irish office in preparation for Brexit.

S&P Global Ratings confirmed late last year that it was setting up an office in Dublin that would ensure it continued to meet EU requirements for ratings agencies once the UK leaves the European Union next year.

The new Irish unit, S&P Global Ratings Europe, has recently acquired the entire shareholding in UK-based Standard & Poor's Credit Market Services Europe.

The non-cash transaction saw the Irish firm allocate €1.8bn in shares in itself to a Luxembourg unit of S&P to satisfy the deal.

S&P Global Ratings confirmed last year that it would create an unspecified number of roles across managerial, analytical and support functions at its new Dublin office, which is due to open by the end of the year.

S&P staff in London were told last December that the new Dublin arm would be the main entity of the rating agency's offices in Europe, the Middle East and Africa.

Filings for the new Dublin arm show that it has just received a €1m cash injection from S&P Global European Holdings Luxembourg.

Accounts for London-based Standard & Poor's Credit Market Services Europe show that it generated revenue of £359.8m (€412.8m) in 2016, and a pre-tax profit of £128.6m (€147.5m).

Of its revenue in 2016, £268.2m (€307.8m) was generated in Europe.

The unit's turnover included £294m from credit rating activities, £26.7m in endorsement fees, £37.4m in service fees, and £1.6m from non-credit rating activity, according to the accounts.

Slightly more than 440 of the firm's employees were based in London that year. Another 79 were based in Germany, 50 in Spain and 43 in Russia.

It also has staff in Poland, Turkey, UAE, Sweden and South Africa.

Standard & Poor's is one of a number of financial institutions that have opted to set up or expand operations in Dublin as Brexit approaches.

US-based bond rating agency Kroll announced last year that it will make Dublin its European headquarters, with plans to create as many as 100 jobs within three years.

It's Kroll's first international office.

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