AI divides credit rating firms Moody's and S&P as investors separate ratings from data businesses

Moody's and S&P Global, leaders in credit ratings, are now viewed as two-part companies: a stable ratings franchise and a data analytics business exposed to AI competition. Ratings remain essential and protected by financial rules, driving steady revenue growth. However, their data and analytics arms face pressure as AI tools evolve, impacting investor sentiment and share prices. Both firms are integrating AI into their products but have not automated ratings themselves. Going forward, investors will watch if the split between the secure ratings business and the AI-exposed data segment widens, influencing company valuations and strategic focus.