eFinancialCareers

Data analysis roles – but few structured graduate programmes.

Credit ratings agencies’ big purpose is to 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 – anything less (BB or below) is known as ‘speculative grade’.

Data providers supply financial markets and the global media with critical real-time information such as company share prices, exchange rates, research and analytics, as well as tools and software for tracking portfolios. They also provide financial and business news services via newswires, television and radio, as well as online and offline publications.

Key players

Thomson Reuters is the biggest player in the financial data market, with a 34% share of business. Bloomberg follows close behind, with a 33% share.

The ratings agency sector is dominated by three companies – Moody’s, Standard & Poor’s and Fitch, which together account for some 97% of the market.

Roles and career paths

Ratings agencies usually recruit graduates into data analysis jobs. Trainees typically start out in research roles in teams focusing on anything from industry sectors to financial products. Fitch has a structured graduate programme, but Moody’s and Standard & Poor’s recruit according to their needs. Data providers also recruit analysts to crunch financial data as well as for IT, customer services and journalism jobs.

Pay

Thomson Reuters’ graduate trainees can expect to start on salaries of £25k-£28k in London, €29k-€34k in Paris and €39k-€45k in Frankfurt, depending on experience and academic background. Ratings agencies typically pay a similar amount, with the additional possibility of a small bonus.

Skills

“We look for graduates with a strong academic background which includes finance, accounting or economics,” says Isabel Mansfield, resourcing manager at Fitch Ratings. “Successful applicants usually have a postgraduate qualification, and language skills are a definite advantage.”

Languages are also valued by data providers, especially in Europe: “Around half of our roles require written and spoken proficiency in one or more languages in addition to English – language graduates with an aptitude for figures are strong candidates,” says Justin Abel, Thomson Reuters’ global head of data.

Click here to find out about global trends in the data providers and ratings agencies sectors.