Credit rating agencies assess the likelihood that an organisation issuing debt will fail to pay back its creditors fully and on time – called ‘going into default’. Organisations are rated from AAA (virtually guaranteed to pay up on time) through to C (indicating a high risk of default). Risks are classified as ‘investment grade’ if they come in at BBB or above, with anything less known as ‘speculative grade’.

Data providers supply financial markets and media with critical real-time information such as company share prices, exchange rates, research and analytics, and tools and software for tracking portfolios. They also offer financial and business news services.

Key players

The credit rating agency business is dominated by US-based Moody’s Investor Services and Standard & Poor’s, the top two, and Fitch Ratings.

In the data provider space, Thomson Reuters and Bloomberg have 29.4% and 29.2% market share respectively, according to Burton-Taylor International Consulting. Other significant names include Dow Jones/Factiva, Interactive Data, FactSet, SIX-Telekurs and IRESS.

Roles and career paths

Rating agencies usually recruit graduates into data analysis jobs. Trainees typically start in research teams focusing on industry sectors and/or financial products. Fitch has a structured graduate programme. Moody’s and Standard & Poor’s recruit according to need. Data providers offer a variety of graduate roles.

Pay and bonuses

Graduate trainees within data providers can expect to start on $35k-40k in London, depending on experience and academic background, according to recruiters. Rating agencies typically pay less at junior level, with the possibility of a small bonus.

Further up the ladder, credit analysis roles pay well. After five to seven years, salaries are $90k-120k, according to the Robert Walters salary survey, rising to $120k-150k after seven to 10 years.

Skills sought

The volatility within the world’s financial markets has led to increased demand for data providers, argues Chris Mills, European human resources director at Interactive Data. While firms still want good technical skills, they also want ‘soft skills’. “In addition to technical skills we also focus on soft skills when hiring. New recruits are encouraged to develop relationship-building skills, as well as the capacity to adapt to a matrix organisation,” he says.

“We look for graduates with a strong academic background that includes finance, accounting or economics, plus the ability to convey a complex message clearly,” says Andy Jackson, head of human resources for EMEA at Fitch Ratings “Successful applicants usually have a postgraduate qualification and often fluency in a second language.”