Nice, you found another blunder in the literature!
“First, and classically, rating agencies’ fees tend to be high. The revenues of rating agencies come from new ratings and from the reexamination of former ones, as it is very difficult for a company, once it has been rated, to withdraw its rating from the market. It means the operational risk of rating agencies is quite low, just as the volatility of their revenues. We don’t know much about the prices of ratings and the profits of agencies. Nevertheless, in 2011, the operational profit of Standard and Poor’s and Moody’s was about 40 %; and Fitch’s was 31 %. For the first nine months of 2011, the revenue of Standard and Poor’s reached US$ 1.3 trillion for about 1,400 analysts. The figures for Moody’s were US$ 1.2 trillion for 1,300 analysts. These figures make for an annual revenue per analyst higher than US$ 1 million, which is quite high.”
Nice, you found another blunder in the literature!
“First, and classically, rating agencies’ fees tend to be high. The revenues of rating agencies come from new ratings and from the reexamination of former ones, as it is very difficult for a company, once it has been rated, to withdraw its rating from the market. It means the operational risk of rating agencies is quite low, just as the volatility of their revenues. We don’t know much about the prices of ratings and the profits of agencies. Nevertheless, in 2011, the operational profit of Standard and Poor’s and Moody’s was about 40 %; and Fitch’s was 31 %. For the first nine months of 2011, the revenue of Standard and Poor’s reached US$ 1.3 trillion for about 1,400 analysts. The figures for Moody’s were US$ 1.2 trillion for 1,300 analysts. These figures make for an annual revenue per analyst higher than US$ 1 million, which is quite high.”
from this paper on reforming rating agencies: https://sci-hub.tw/https://link.springer.com/chapter/10.1007/978-3-319-44287-7_12
So this should be billions, not trillions.
I had actually interpreted the figure differently and thought that rating agencies analysts rate trillions in value or something.
Have deleted these from the dataset.