The Development of Scope Ratings’ Market Share 2024

Scope Ratings GmbH, a European credit rating agency (CRA), has shown a consistent, albeit modest, increase in market share over recent years. According to the 2024 CRA Market Share Report published by the European Securities and Markets Authority (ESMA), Scope Ratings’ market share grew to 1.83% according to the 2024 report, compared to 1.72% in 2023. This represents a year-on-year increase of 0.11 percentage points.

Position in the Market

Although still a small player compared to major agencies like S&P Global Ratings, Moody’s, and Fitch, Scope Ratings holds a distinctive position as a Europe-focused CRA. The agency ranks fifth in terms of market share among EU-registered CRAs, making it one of the key alternatives for issuers seeking ratings from agencies with less than 10% of the market share.

Competitive Dynamics

The credit rating industry is dominated by three agencies—S&P Global Ratings (47.81%), Moody’s (30.59%), and Fitch (11.86%)—which collectively account for over 90% of the market. Scope Ratings operates in the remaining segment, targeting issuers who are encouraged by EU regulations to diversify their rating sources. Article 8d of the CRA Regulation incentivizes the use of smaller CRAs, providing a regulatory advantage to agencies like Scope.

Growth Drivers

Scope Ratings’ growth can be attributed to several factors:

1. Regional Focus: The agency’s deep understanding of the European market appeals to local issuers.
2. Regulatory Support: EU regulations promoting competition in the credit rating industry benefit smaller agencies like Scope.
3. Diversification: Scope’s offering across various rating categories—corporate, financial institutions, sovereign, and public finance—enables it to meet diverse client needs.

Challenges and Opportunities

Outlook

Scope Ratings’ steady increase in market share reflects its potential as a viable alternative to larger agencies, particularly in the European context. As EU regulations continue to emphasize market diversification, Scope’s role in the credit rating ecosystem is likely to grow, albeit within the constraints of a highly concentrated industry.