None of them trading at significant discount to their 10 year average PE …
Whats your source for 10 Year average PE?
Anybody saw the results?
How has rating revenue for FY19 gone down by 7.5% to ₹297 crores even when volume of debt rated has gone up by 20% from ₹16.5 lac crores to ₹20 lac crores?
Here’s a couple of points:
- Buyer power has decreased. It appears that at least a section of buyers of CARE’s services has diminished financial capabilities, namely NBFCs. The report from CARE has a mention.
- Competitors feel the same pressure. CRISIL volume has decreased 1% and profit decreased 7%, although CRISIL has a far diversified business than CARE.
So it appears that the choice for rating agencies has been to take the business at lower margins, or to forsake the business.
Your second point seems more valid and applicable.
I hope this moment of multiple crises for the ratings industry triggers consolidation so that this trend of price erosion is arrested.