1. Rating Agency Presented by Group 1

2. Why do Rating Agency Exist? Issuers Investors and Lenders  Improved funding flexibility  A simple indicator of credit risk  Reduce borrowing costs  Risk premium assessment. Credit ratings are an excellent indicator of a bond's future credit performance"  More access to capital markets  Portfolio monitoring and adjustment  Counterparty risk assessment, trade finance, swaps, insurance, etc.  Intermediaries e.g. providing underwriting in planning, pricing and placement of issues  Help sales forces to place new issues  Monitoring counterparty risks

3. Goldman SachsUnited States of America Moody’sUnited States of America Fitch IBCAUnited States of America Duff & Phelps Credit Rating Co.United States of America Standard and Poor’sUnited States of America

4. Biggest Player Standard & Poor’s

5. Background  A merger in 1941 of Standard Statistics and Poor's Publishing Company  The pre-eminent global provider of independent highly valued investment data, valuation, analysis and opinions.

6. Job Nature  It contains THREE business units:  a) Corporate Value Consulting  b) Credit Market Services  c) Investment Service

7. Corporate Value Consulting  I) Corporate Finance Consulting  Fills the void in the deal process by providing impartial, ongoing, advisory assistance  Three typical services:  Fairness opinions  Merger and acquisition advisory  Financial modeling

8. Corporate Value Consulting II) Value Consulting  Offers analytical models and organizational processes to assist management through the strategic business decision making. III) Financial Reporting and Tax Valuation - Offers valuation services that meet the most sophisticated financial reporting, tax, and regulatory

9. Credit Market Services I) Corporate and Government Rating Services - Provides credit analysis services for corporates, project finances, public financings and financial service companies. - It contains FOUR units: i) Corporate Credit Ratings ii) Issue Credit Ratings iii) Entity Credit Ratings iv) Bond Fund Ratings

10. Credit Market Services II) Structured Finance Rating Services - Provides credit analysis products and services for securitized financings in the global capital markets III) E-Business Services - to deliver CMS' credit information, descriptive data, evaluations and corporate actions content to customers.

11. Credit Market Services IV) Risk Solutions - Offers a range of products and services to credit management needs of financial institutions and corporations

12. Investment Services I) Advisor Services - Advise people on their investment II) Institutional Market Services - represent Standard &Poor's objective analysis to the investment community III) Portfolio Services - provides investment portfolio strategies and stock selection services.

13. How To Make Money  makes use of its reputation and influence of its ratings to attract companies provides ratings  and thus incomes of Standard & Poor's are mainly came from fees received from those companies it rated.

14. The End