Credit in Demand: Why Rating Agency Stocks May Surge in 2025 Part 2

Company-Specific Outlooks CRISIL Ltd. (India) Strong research vertical (over 60% revenue) and parentage of S&P Global gives it a global edge. Q2 FY25 YoY rating revenue up 30%. Valuation: Trading at ~50x P/E; high but justified due to moat. Source: IIFL Securities, Dec 2024 via LiveMint ICRA Ltd. (India) Backed by Moody’s; benefits from global best practices and brand recall. Stock hit all-time highs in late 2024 due to stronger margins and rising issuance volumes. Source: Markets Mojo, Oct 2024 CARE Ratings (India) Turnaround story; newer management, focus on tech adoption. Valuation more reasonable; seen as a value pick in CRA sector. Target price: ₹1,744 by Dec 2025. Source: IIFL Securities, Dec 2024 via LiveMint S&P Global & Moody’s (Global) Expanding in ESG and private credit rating space. S&P Global stock rose 4.9% after beating Q4 earnings and raised its FY25 guidance. Source: ***** Feb 2025 Credit Rating Agencies are expected to witness mid-to-high single-digit revenue growth in 2025, with stock returns potentially in the 10–20% range, depending on the company. CRISIL and ICRA remain strong momentum plays, while CARE Ratings offers a lower P/E entry point. Globally, S&P and Moody’s remain defensive growth bets with diversified income streams.