S&P Global Ratings Europe Limited (Niederlassung Deutschland)

Frankfurt am Main

Befreiender Jahresabschluss gem. §325 a HGB
zum Geschäftsjahr vom 01.01.2020 bis zum 31.12.2020

S&P Global Ratings Europe Limited // Dublin/Irland

Registration number: 611431

Annual Report and Financial Statements for the Financial Year Ended 31 December 2020

Contents

Company Information

Directors' Report

Directors' Responsibility Statement

Independent Auditor's Report

Income Statement

Statement of Comprehensive Income

Statement of Financial Position

Statement of Changes in Equity

Notes to the Financial Statements

Company Information

Directors	J Berisford
	J R Garvey
	J F Penrose
	U Schliessler
	Y M E Le Pallec
Company secretary	Matsack Trust Limited
	J Lynch Bridson
Registered office	Fourth Floor
	Waterways House
	Grand Canal Quay
	Dublin 2
	D02 NF40
	Ireland
Taxhead number	3499529NH
Solicitor	Matheson
	70 Sir Rogerson's Quay
	Dublin 2
	Ireland
Banker	Citibank
	1 North Wall Quay
	Dublin 1
	Ireland
Auditor	Ernst & Young
	Harcourt Centre
	Harcourt Street
	Dublin 2
	D02 YA40
	Ireland

Directors' Report for the Financial Year Ended 31 December 2020

The Directors present their report and the financial statements for the year ended 31 December 2020.

Principal activity

The principal activity of the Company is the independent provision of credit ratings, research and analytics to investors, issuers and other market participants.

Business review

During the year 2020, the Company carried on its credit rating business in Ireland and through its branches in France, Germany, Italy, Poland, Russia, Saudi Arabia, South Africa, Spain, Sweden, United Arab Emirates ("UAE") and the United Kingdom ("UK").

Amidst a global pandemic, the Company remained resilient, as financial performance improved throughout the year. The Company benefited from growth in volume on public debt issuance across most sectors, in particular, from investment grade issuance in the corporate sector. The Company expects financial performance to remain strong throughout the year, as it projects issuers to continue to utilize the debt capital markets for liquidity and working capital requirements.

The UK left the European Union ("EU") on 31 January 2020 and entered into an 11-month transition period which ended on 31 December 2020. The European Securities and Markets Authority ("ESMA") continues to maintain regulatory oversight over European credit ratings issued by S&P Global Ratings Europe Limited, while the Financial Conduct Authority ("FCA") has responsibility for regulatory oversight of UK credit ratings agencies and for ratings that are issued out of the UK. Due to the dual requirements for European and UK credit ratings to be regulated by ESMA and the FCA respectively, S&P Global Ratings UK Limited ("SPGRUK"), a company incorporated in England and Wales, was established to maintain UK ratings. SPGRUK purchased the assets and liabilities, excluding cash, of the UK branch of S&P Global Ratings Europe Limited. This transaction took place at 23:00 GMT on 31 December 2020. Refer to note 26 for further details on the disposal of the UK branch.

Financial key performance indicators

The Company's key financial and other performance indicators during the year were as follows:

	Unit	2020	2019
Turnover	€000	713,489	646,857
Profit for the year	€000	1,115,864	255,721
Total assets	€000	1,692,257	893,818
Total liabilities	€000	293,458	597,903
Shareholders' funds	€000	1,398,799	295,915

Principal risks and uncertainties

The following factors are viewed by the Directors as being the Company's principal risks and uncertainties that could impact operating results in the next financial year:

•	Changes in the level of public debt issuance.
•	Changes in regulation.
•	Worldwide economic and political conditions that may result from legislative, regulatory, and policy changes.
•	Move towards regulatory reform in the Environmental, Social & Governance (ESG) space, across the European Union.

•	Worldwide economic slowdown or recession caused by the government and public health actions taken as a result of the COVID-19 pandemic.

Financial instruments

Objectives and policies

The Company has established a risk and financial management framework whose primary objectives are to protect the Company from events that hinder the achievement of the Company's performance objectives.

The objectives aim to limit undue counterpart exposure, ensure sufficient working capital exist and monitor the management of risk.

Exposure to price, credit, liquidity and cash flow risk

There are no material price and credit risks faced by the Company due to the fact that it does not have any internal or external borrowings. Trade creditors all occur within the normal course of operations and are settled on a timely basis.

Cash flow risk and the associated variability in cash flows, is mitigated by the fact that the Company is linked to a regional cash pool and can drawn on funds as and when needed on a short-term basis. The Company also does not have any significant internal or external borrowings which would drive significant cash outflows.

Credit risk is the risk that one party to a financial instrument will cause a financial loss for that other party by failing to discharge an obligation. The Company's policies are aimed at minimising such losses, and require that deferred terms are only granted to customers who demonstrate an appropriate payment history and satisfy credit worthiness procedures.

Results and dividends

The results of the year's trading, the financial position of the Company and the transfer to reserves are shown in the annexed financial statements.

The Company's profit for the year, before taxation, amounted to €1,194,764,755 (2019: €321,096,000).

The Company paid dividends during the year of €Nil (2019: €390,000,000).

Directors of the Company

The directors, who held office at any time during the financial year, were as follows:

DAP Crawley (ceased 30 June 2020)

J Berisford

J R Garvey

J F Penrose

J W Plantagie (ceased 31 July 2020)

T J P Sciard (ceased 30 June 2020)

U Schliessler (appointed 1 July 2020)

The following director was appointed after the year end:

Y M E Le Pallec (appointed 23 January 2021)

Declaration of material interest in transactions

The Directors and the company secretary did not have any direct or beneficial interest in the shares of the Company at any stage during the financial year

Branches outside the State

The Company has the following branches outside of Ireland, namely in France, Germany, Italy, Poland, Russia, Saudi Arabia, South Africa, Spain, Sweden, UAE and UK. The UK branch was sold at the end of the year.

Corporate Responsibility

As a wholly owned subsidiary in a larger group of companies, the Company is required to contribute toward the successful achievement of the Corporate Responsibility Strategy set out by its ultimate parent, S&P Global Inc., within the jurisdictions that the Company and its branches operate.

Going concern

No material uncertainties that cast doubt about the ability of the Company to continue as a going concern have been identified by the Directors. The Company's business activities together with the factors likely to affect its future development and performance have been included in the Directors Report. The Company has not suffered any material financial impacts as a result of the COVID-19 pandemic and has the financial resources to manage its business risks successfully in the current economic environment and continue in operational existence for 12 months from the date when the financial statements are authorised for issue.

Post balance sheet events

An interim dividend of €225,000,000 to its immediate parent undertaking, S&P Global European Holdings Luxembourg S.a.r.l. was declared and paid on 6 January 2021. After the balance sheet date, the Company received the cash consideration of €265,362,270 as part of the sale agreement associated with the disposal of S&P Global Ratings Europe Limited, UK branch.

S&P Global Ratings Europe Limited received four loan notes for the amount of GBP 699,912,135 (EUR 771,566,340) from S&P Global Ratings UK Limited for the purchase of the UK branch of S&P Global Ratings Europe Limited as mentioned in Note 18. After year end, the Company distributed the four loan notes by way of dividend in specie to S&P Global European Holdings Luxembourg S.à r.l., which subsequently assigned these to S&P Global European Holdings Luxembourg S.à r.l., Barbados Branch. The Directors of S&P Global Ratings UK Limited have approved that the four loan notes can be listed on 21 April 2021. S&P Global Ratings UK Limited has made an application to the International Stock Exchange Authority Limited (TISEA) on 22 April 2021 for the four loan notes to be admitted to the Official List of The International Stock Exchange.

Employee involvement

The Company's continuing policy is to consult and discuss with employees, matters likely to affect their interests. Employees have been encouraged to present their suggestions and views on the Company's performance. Information on the Company and associated undertakings is given to all employees. The Company's intranet site is updated on a regular basis.

Disabled employees

Every effort is made to ensure that disabled employees are given full and fair consideration when vacancies arise. There is a training scheme available so that all employees who become disabled in the course of employment can, where possible, continue employment with the Company.

Political donations

No political donations were made by the Company during the year (2019: €Nil).

Directors' compliance policy statement

We, the Directors of the Company who held office at the date of approval of these Financial Statements are responsible for securing the Company's compliance with its relevant obligations; and

We confirm that the following matters have been done under section 225(2) in fulfilling its responsibilities:

•	drawing up of a compliance policy statement setting out the Company's policies (that, in our opinion, are appropriate to the company) respecting compliance by the Company with its relevant obligations;
•	putting in place appropriate arrangements or structures (that, in our opinion) are, designed to secure material compliance with the Company's relevant obligations; and
•	conducting a review during the financial year of any arrangements or structures that have been put in place.

Statement on relevant audit information:

The directors at the time the report is approved has confirmed that:

•	so far as the Directors are aware, there is no relevant audit information of which the Company's auditors are unaware, and
•	the Directors have taken all the steps that ought to have been taken as a director in order to make themselves aware of any relevant information and to establish that the Company statutory auditors are aware of that information.

Reappointment of auditors

The auditors, Ernst & Young were appointed as first auditors of the Company and, have indicated their willingness to continue in office in accordance with Section 383(2) of the Companies Act, 2014.

Audit committee statement

The Company does not have an audit committee as the Company is a wholly owned subsidiary in a larger group of companies and the parent of such group, being S&P Global Inc., has established an audit committee.

Accounting records

The measures taken by the directors to ensure compliance with the requirements of section 281 to 285 of the Companies Act 2014 with regard to keeping of accounting records, are the employment of appropriately qualified accounting personnel and the maintenance of computerised accounting systems. The Company accounting records are maintained at the Company registered office at:

Fourth Floor

Waterways House

Grand Canal Quay

Dublin 2

D02 NF40

Approved by the Board on 21 April 2021 and signed on its behalf by:

J F Penrose, Director

YMELe Pallec, Director

Directors' Responsibility Statement

The directors acknowledge their responsibilities for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

Irish company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with Irish Generally Accepted Accounting Practice (accounting standards issued by the Financial Reporting Council and Irish Law), including FRS 101 'Reduced Disclosure Framework' ('FRS 101'). Under Irish company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company, of the profit or loss of the company for that period and that they otherwise comply with the Companies Act 2014.

In preparing these financial statements, the directors are required to:

•	select suitable accounting policies and apply them consistently;
•	make judgements and accounting estimates that are reasonable and prudent;
•	state whether FRS 101 has been followed, subject to any material departures disclosed and explained in the financial statements; and
•	prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for ensuring that the company keeps or causes to be kept adequate accounting records which correctly explain and record the transactions of the company, enable at any time the assets, liabilities, financial position and profit or loss of the company to be determined with reasonable accuracy, enable them to ensure that the financial statements and directors' report comply with the Companies Act 2014 and enable the financial statements to be audited.

They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. The directors are responsible for the maintenance and integrity of the corporate and financial information included on the company's website.

The directors are responsible for the maintenance and integrity of the corporate and financial information included on the company's website. Legislation in the Republic of Ireland governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF S&P GLOBAL RATINGS EUROPE LIMITED

Report on the audit of the financial statements

Opinion

We have audited the financial statements of S&P Global Ratings Europe Limited ('the Company') for the year ended 31 December 2020 which comprise the Income Statement, the Statement of Comprehensive Income, the Statement of Financial Position and the Statement of Changes in Equity and notes to the financial statements, including the summary of significant accounting policies set out in note 2. The financial reporting framework that has been applied in their preparation is Irish Law and FRS 101 Reduced Disclosure Framework issued in the United Kingdom by the Financial Reporting Council.

In our opinion the financial statements:

•	give a true and fair view of the assets, liabilities and financial position of the company as at 31 December 2020 and of its profit for the year then ended;
•	have been properly prepared in accordance with FRS 101 Reduced Disclosure Framework; and
•	have been properly prepared in accordance with the requirements of the Companies Act 2014.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (Ireland) (ISAs (Ireland)) and applicable law. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Company in accordance with ethical requirements that are relevant to our audit of financial statements in Ireland, including the Ethical Standard issued by the Irish Auditing and Accounting Supervisory Authority (IAASA), and we have fulfilled our other ethical responsibilities in accordance with these requirements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Company's ability to continue as a going concern for a period of at least twelve months from the date when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. However, because not all future events or conditions can be predicted, this statement is not a guarantee as to the company's ability to continue as a going concern.

Other information

The directors are responsible for the other information. The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2014

In our opinion, based solely on the work undertaken in the course of the audit, we report that:

•	the information given in the directors' report for the financial year ended for which the financial statements are prepared is consistent with the financial statements; and
•	the directors' report has been prepared in accordance with applicable legal requirements.

We have obtained all the information and explanations which, to the best of our knowledge and belief, are necessary for the purposes of our audit.

In our opinion the accounting records of the Company were sufficient to permit the financial statements to be readily and properly audited and the financial statements are in agreement with the accounting records.

Matters on which we are required to report by exception

Based on the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the directors' report.

The Companies Act 2014 requires us to report to you if, in our opinion, the disclosures of directors' remuneration and transactions required by sections 305 to 312 of the Act, which relate to disclosures of directors' remuneration and transactions are not complied with by the Company. We have nothing to report in this regard.

Respective responsibilities

Responsibilities of directors for the financial statements

As explained more fully in the directors' responsibilities statement set out on page 7, the directors are responsible for the preparation of the financial statements in accordance with the applicable financial reporting framework that they give a true and fair view, and for such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (Ireland) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

A further description of our responsibilities for the audit of the financial statements is located on the IAASA's website at: http://www.iaasa.ie/getmedia/b2389013-1cf6-458b-9b8f-a98202dc9c3a/Description_of_auditors_responsibilities_for_audit.pdf.

This description forms part of our auditor's report.

The purpose of our audit work and to whom we owe our responsibilities

Our report is made solely to the Company's members, as a body, in accordance with section 391 of the Companies Act 2014. Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed.

28th April 2021

Martina Keane

for and on behalf of

Ernst & Young Chartered Accountants and Statutory Audit Firm

Dublin

Income Statement for the Financial Year Ended 31 December 2020

		Continued Operations 2020	Discontinued Operations 2020
	Note	€000	€000
Turnover	4	597,721	115,768
Administrative expenses		(260,113)	(84,264)
Operating profit	6	337,608	31,504
Interest receivable and similar income	7	258	-
Interest payable and similar expenses	8	(1,855)	(3,895)
Pension cost	9	(722)	-
Gain on the sale of the UK branch	5	-	831,867
		(2,319)	827,972
Profit before tax		335,289	859,476
Tax on profit on ordinary activities	13	(71,373)	(7,528)
Profit for the year		263,916	851,948

	Total 2020	Continued Operations 2019	Discontinued Operations 2019	Total 2019
	€000	€000	€000	€000
Turnover	713,489	533,840	113,017	646,857
Administrative expenses	(344,377)	(250,642)	(57,440)	(308,082)
Operating profit	369,112	283,198	55,577	338,775
Interest receivable and similar income	258	1,458	-	1,458
Interest payable and similar expenses	(5,750)	(3,080)	(15,131)	(18,211)
Pension cost	(722)	(925)	-	(925)
Gain on the sale of the UK branch	831,867	-	-	-
	825,653	(2,547)	(15,131)	(17,678)
Profit before tax	1,194,765	280,651	40,446	321,097
Tax on profit on ordinary activities	(78,901)	(53,454)	(11,922)	(65,376)
Profit for the year	1,115,864	227,197	28,524	255,721

On 31 December 2020, the Company sold its UK branch for a consideration of EUR 1,044,774,446 resulting in an accounting gain of EUR 831,867,000. The UK branch has been reported as a discontinued operation in the Income Statement for the Financial Year Ended 31 December 2020 with its comparatives being restated.

The Turnover from discontinued operations is based on the geography of the revenue that will no longer be billed to the Company due to the disposal of the UK Branch.

The notes on pages 16 to 52 form an integral part of these financial statements.

Statement of Comprehensive Income for the Financial Year Ended 31 December 2020

		2020	2019
	Note	€000	€000
Profit for the year		1,115,864	255,721
Items that will not be reclassified subsequently to profit or loss
Movements on Germany defined benefit plan	22	(5,422)	413
Actuarial gain on defined benefit plans	22	4,706	7,684
Pension surplus on UK defined benefit plan not recognised	22	(3,602)	(2,073)
Return on plan assets (less than) discount rate	22	-	4,130
Movement on deferred tax relating to defined pension plan	13	(1,503)	(2,453)
		(5,821)	7,701
Items that may be reclassified subsequently to profit or loss
Foreign currency translation gains or losses		21,195	(12,301)
Profit for the year		1,115,864	255,721
Other comprehensive income		15,374	(4,600)
Total comprehensive income		1,131,238	251,121

The notes on pages 16 to 52 form an integral part of these financial statements.

(Registration number: 611431)

Statement of Financial Position as at 31 December 2020

		2020	2019
	Note	€000	€000
Non current assets
Intangible assets	14	110,618	330,085
Tangible assets	15	4,232	4,272
Right of use assets	16	22,445	23,335
Loan notes receivable	17	771,566	-
		908,861	357,692
Current assets
Debtors	18	760,451	478,886
Cash at bank and in hand	19	22,945	57,240
		783,396	536,126
Creditors: Amounts falling due within one year	20	(211,822)	(522,780)
Net current assets		571,574	13,346
Total assets less current liabilities		1,480,435	371,038
Creditors: Amounts falling due after more than one year	21	(18,007)	(19,108)
Net assets excluding retirement benefit asset/(liability)		1,462,428	351,930
Defined benefit pension liability	22	(63,629)	(56,015)
Net assets		1,398,799	295,915
Capital and reserves
Share capital	24	3	3
Other reserves	25	76,482	76,482
Merger Reserve	25	(1,307,719)	(2,309,259)
Retained earnings	25	2,630,033	2,528,689
Shareholders' funds		1,398,799	295,915

Approved by the Board on 21 April 2021 and signed on its behalf by:

J F Penrose, Director

Y M E Le Pallec, Director

The notes on pages 16 to 52 form an integral part of these financial statements.

Statement of Changes in Equity for the Financial Period from 1 January 2020 to 31 December 2020

	Share capital	Merger reserve	Other reserves	Retained earnings	Total
	€000	€000	€000	€000	€000
At 1 January 2020	3	(2,309,259)	76,482	2,528,689	295,915
Profit for the year	-	-	-	1,115,864	1,115,864
Other comprehensive income	-	-	-	15,374	15,374
Total comprehensive income	-	-	-	1,131,238	1,131,238
Share based payment transactions - value of services	-	-	-	152	152
Share based payments relating to the UK branch	-	-	-	(29,212)	(29,212)
Realised gain on the merger reserve - UK branch portion of the merger reserve	-	1,001,540	-	(1,001,540)	-
Tax movement on Share based payment	-	-	-	706	706
At 31 December 2020	3	(1,307,719)	76,482	2,630,033	1,398,799

The notes on pages 16 to 52 form an integral part of these financial statements.

Statement of Changes in Equity for the Financial Period from 1 January 2019 to 31 December 2019

	Share capital	Share premium account	Merger Reserve
	€000	€000	€000
At 1 January 2019	3	-	(2,309,259)
Profit for the period	-	-	-
Other comprehensive income	-	-	-
Total comprehensive income	3	-	(2,309,259)
Currency Hedge Gains/Losses	-	-	-
Share based payment transactions - value of services	-	-	-
Dividends paid	-	-	-
Tax movement on Share based payment	-	-	-
At 31 December 2019	3	-	(2,309,259)

	Other reserves	Retained earnings	Total
	€000	€000	€000
At 1 January 2019	76,482	2,667,379	434,605
Profit for the period	-	255,721	255,721
Other comprehensive income	-	(4,600)	(4,600)
Total comprehensive income	76,482	2,918,500	685,726
Currency Hedge Gains/Losses	-	(117)	(117)
Share based payment transactions - value of services	-	(170)	(170)
Dividends paid	-	(390,000)	(390,000)
Tax movement on Share based payment	-	476	476
At 31 December 2019	76,482	2,528,689	295,915

The notes on pages 16 to 52 form an integral part of these financial statements.

Notes to the Financial Statements for the Financial Year Ended 31 December 2020

1 General information

The Company is a private company limited by share capital, incorporated in Ireland and domiciled in Republic of Ireland.

The address of its registered office is:

Fourth Floor

Waterways House

Grand Canal Quay

Dublin 2

D02 NF40

Ireland

These financial statements of the Company for the financial year ended 31 December 2020 were authorised for issue by the board on 21 April 2021 and the Statement of Financial Position was signed on the board's behalf by J F Penrose and Y M E Le Pallec. The company is incorporated and domiciled in Republic of Ireland.

2 Accounting policies

Statement of compliance

The Company's financial statements have been prepared in accordance with Financial Reporting Standard 101. Reduced Disclosure Framework ("FRS 101") and in accordance with applicable accounting standards and interpretations as issued by the Irish statue comprising of the Companies Act 2014.

Basis of preparation

The financial statements have been prepared in accordance with Financial Reporting Standard 101, 'Reduced Disclosure Framework', issued by the Financial Reporting Council and Irish statute comprising of the Companies Act 2014.

The financial statements have been prepared under the historical cost convention, except that as disclosed in the accounting policies, certain items are shown at fair value, and on the going concern basis.

The Company's financial statements are presented in Euro's and all values are rounded to the nearest thousand Euro's (€'000) except otherwise indicated.

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Reduced Disclosure Framework

The Company has availed of the following disclosure exemptions available under FRS 101 as the company is a qualifying entity and is included within publicly available consolidated financial statements of S&P Global, Inc. as mentioned in note 28:

IAS 1, 'Presentation of financial statements' paragraph 79 (a) (iv) requiring a reconciliation of shares from the beginning to the end of the period, paragraphs 10(d) and 38(A) regarding the presentation of a cash flow statement and paragraphs 10(f), 38(B), (C), (D), 40 (A), (B), (C), (D) regarding presentation of additional periods primary statements where there are changes in accounting policies.

IAS 1, 'Presentation of financial statements' paragraph 134 to 136- information about its objectives, policies and processes for managing capital.

IAS 7, 'Statement of cash flows'

IAS 8, 'Accounting policies, changes in accounting estimates and errors' - disclosures in relation to accounting standards that have been issued but are not yet effective

IAS 16, 'Property, Plant and Equipment' paragraph 73(e).

IAS 24, 'Related Party Disclosures' paragraph 17 and 18A - disclosure of key management personnel.

The requirements in IAS 24, 'Related party disclosures' to disclose related party transactions entered into between two or more members of a group.

IAS 36, 'Impairement of Assets' paragraph 134(d) to 134(f) - disclosures regarding detailed information about the estimates used to measure recoverable amounts of cash generating units containing goodwill or intangible assets with indefinate useful lives.

IFRS 7, 'Financial Instruments' disclosures - exemption available from all disclosures of this standard.

IFRS 5, 'Non-current assets held for sale and discontinued operations' - paragraph 33c in relation to the net cash flows attributable to die operating, investing and financing activities of discontinued operations.

IFRS 2, 'Share based payment' paragraphs 45(b) and 46 to 52 - disclosures regarding a reconciliation of the number of options at the beginning and end of period as well as information regarding how fair value is determined.

IFRS 15, 'Revenue from Contracts' paragraph 110 and paragraphs 113(a), 114, 115, 118, 119(a) to (c), 120 to 127 and 129.

IFRS 13 'Fair value measurement' paragraphs 91 to 99 which relates to all of the disclosures in relation to fair value measurements.

Going concern

The financial statements have been prepared on a going concern basis.

Leases

All leases held by the Company are accounted for in accordance with IFRS 16. The Company assesses at contract inception whether a contract is, or contains, a lease. That is, if the contact conveys the right to control the use of an identified asset for a period of time in exchange for consideration.

Company as a lessor

When the Company acts as a lessor, it determines at lease inception whether each lease is a finance or an operating lease.

Company as a lessee

The Company applies a single recognition and measurement approach for all leases, except for short-term leases and leases of low-value assets. The Company recognizes lease liability to make lease payments and right-of-use asset representing the right to use the underlying assets.

Right-of-use assets are measured at either:

The Company recognises right-of-use assets at the commencement date of the lease (i.e., the date the underlying asset is available for use). Right-of-use assets are measured at cost, less any accumulated depreciation and impairement losses, and adjusted for any remeasurement of lease liabilities. The cost of right-of-use assets includes the amount of lease liabilities recognised, initial direct costs incurred, and lease payments made at or before the commencement date less any lease incentives received. Right-of-use assets are depreciated on a straight-line basis over the shorter of the lease term and the estimated useful lives of the assets.

If ownership of the leased asset transfers to the Group at the end of the lease term or the cost reflects the exercise of a purchase option, depreciation is calculated using the estimated useful life of the asset.

Lease liabilities are measured at:

The Company recognises lease liabilities at the present value of the lease payments that are not paid at the commencement date discounted using the Company's incremental borrowing rate at the date of initial application. Subsequent to initial measurement lease liabilities increase as a result of interest charged at a subsequently depreciated using the straight-line method from the commencement date to the end of the lease term. In addition, the carrying amount of lease liabilities is remeasured if there is a modification, a change in the lease term, a change in the lease payments.

Revenue recognition

Revenue from contracts with customers is recognised when control of the goods or services are transferred to the customer at an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services. The Company has generally concluded that it is the principal in its revenue arrangements, because it typically controls the goods or services before transferring them to the customer.

Transaction revenue

Transaction revenue is recognised at the point in time when our performance obligation is satisfied by issuing a rating on our customer's instruments, our customer's creditworthiness, or a counter-party's creditworthiness and when we have a right to payment and the customer can benefit from the significant risks and rewards of ownership. Transaction revenue of the Company primarily includes fees associated with:

•	ratings related to new issuance of corporate and government debt instruments; and structured finance instruments;
•	bank loan ratings; and
•	corporate credit estimates, which are intended, based on an abbreviated analysis, to provide an indication of our opinion regarding creditworthiness of a company which does not currently have a credit rating.

Non-transaction revenue

Non-transaction revenue of the Company primarily related to surveillance of a credit rating, annual fees for customer relationship-based pricing programs, fees for entity credit ratings and global research and analytics. For surveillance services, we continuously monitor factors that impact the creditworthiness of an issuer over the contractual term with revenue recognised to the extent that our performance obligation is progressively fulfilled over the term contract. Because surveillance services are continuously provided throughout the term of the contract, our measure of progress towards fulfillment of our obligation to monitor a rating is a time-based output measure with revenue recognised proportionately over the term of the contract.

Arrangements with Multiple Performance Obligations

Our contracts with customers may include multiple performance obligations. Revenue relating to agreements that provide for more than one performance obligation is recognised based upon the relative fair value to the customer of each service component as each component is earned. The fair value of the service components are determined using an analysis that considers cash consideration that would be received for instances when the service components are sold separately. If the fair value to the customer for each service is not objectively determinable, we make our best estimate of the services' stand-alone selling price and record revenue as it is earned over the service period.

Remaining Performance Obligations

Remaining performance obligations represent the transaction price of contracts for work that has not yet been performed. We recognise revenue on approximately half and three-quarters of the remaining performance obligations over the next 12 and 24 months, respectively, with the remainder recognised thereafter.

Unearned Revenue

We record unearned revenue when cash payments are received or due in advance of our performance. This is sometimes referred to as deferred revenue. A liability account that reports amounts received in advance of providing goods or services. When the goods or services are provided, this account balance is decreased and a revenue account is increased.

A contract liability is recognised if a payment is received or a payment is due (whichever is earlier) from a customer before the Company transfers the related goods or services. Contract liabilities are recognised as revenue when the Company performs under the contract (i.e., transfers control of the related goods or services to the customer).

Interest income and expense

Interest income is recognised in the profit or loss using the effective interest method.

Finance costs are charged to the income statement over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated debt instrument.

Foreign currency transactions and balances

The Company's presentational currency is EUR. The Company has offices where the functional currencies vary from the presentational currency as they use their respective local currencies.

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each reporting period, foreign currency monetary items are translated using the closing rate. Non monetary items measured at historical cost are translated using the exchange rate at the date of the transaction. Non monetary items measured at fair value are translated using the exchange rate at the date when the fair value was determined. For income and expense items in local currency, these are translated at period end using the average rate for the period.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the income statement, except when deferred in other comprehensive income as qualifying cash flows.

Current and deferred taxation

The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income or to an item recognised directly in equity, the corresponding tax is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

Deferred tax balances are not recognised if they arise from the initial recognition of goodwill; or arise from initial recognition of an asset or liability in a transaction other than a business combination that, at the time of the transaction, affects neither accounting nor taxable profit or loss.

•	The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
•	Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised if they arise from the initial recognition of goodwill; or arise from initial recognition of an asset or liability in a transaction other than a business combination that, at the time of the transaction, affects neither accounting nor taxable profit or loss. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

Deferred income taxes are offset only if a legally enforceable right exists to set off current year tax assets against current year tax liabilities and the deferred taxes relate to the same taxable entity and the same taxation authority.

Tangible assets

Tangible fixed assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses. An item of property, plant and equipment and any significant part initially recognised is derecognised upon disposal (i.e., at the date the recipient obtains control) or when no future economic benefits are expected from its use or disposal. Any gain or loss arising on derecognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in the statement of profit or loss when the asset is derecognised. The residual values, useful lives and methods of depreciation of property, plant and equipment are reviewed at each financial year end and adjusted prospectively, if appropriate.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class	Depreciation method and rate
Leasehold improvements	ten years
Furniture, fittings and equipment	between three and ten years
Motor vehicles	three years

Intangible assets - Goodwill

Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the company's interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the entity recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less any accumulated impairment losses. Goodwill is held in the currency of the acquired entity and revalued to the closing rate at each reporting period date.

Goodwill is not subject to amortisation but is tested for impairment.

Negative goodwill up to the fair value of the non-monetary assets acquired is recognised in profit or loss in the periods in which the non-monetary assets are recovered. Any excess exceeding the fair value of the non-monetary assets acquired shall be recognised in profit or loss in the periods expected to be benefited.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments with a maturity of three months or less, that are readily convertible to a known amount of cash and are subject to an insignificant risk of changes in value.

Financial instruments

Classification

The Company recognises financial instruments when it becomes a party to the contractual arrangements of the instrument. Financial instruments are derecognised when they are discharged or when the contractual terms expire. The Company's accounting policies in respect of the financial instruments transactions are explained below:

Financial assets

Financial assets are classified, at initial recognition, as subsequently measured at amortised cost, fair value through other comprehensive income, and fair value through income statement.

The classification of financial assets at initial recognition depends on the financial asset's contractual cash flow characteristics and the Company's business model for managing them. In order for a financial asset to be classified and measured are amortised cost or fair value through other comprehensive income, it needs to give rise to cash flows that are 'solely payments of principal and interest' on the principal amount outstanding. The company's business model for managing financial assets refers to how it manages its financial assets in order to generate cash flows.

The Company recognises an allowance for expected credit losses for all debt instruments not held at fair value through income statement. Expected credit losses are based on the difference between the contractual cash flows due in accordance with the contract and all the cash flows that the Company expects to receive, discounted at an approximation of the original effective interest rate. The expected cash flows will include cash flows from the sale of collateral held or other credit enhancements that are integral to the contractual terms.

Expected credit losses are recognised in two stages. For credit exposures for which there has not been a significant increase in credit risk since initial recognition, expected credit losses are provided for credit losses that result from default events that are possible within the next 12-months. For those credit exposures for which there has been a significant increase in credit risk since initial recognition, a loss allowance is required for credit losses expected over the remaining life of the exposure, irrespective of the timing of the default.

The Company's intercompany financing is within the scope of IFRS 9 as it holds intercompany loans and intercompany receivable balances.

Financial liabilities

The Company classifies all of its financial liabilities as liabilities at amortised cost.

Financial liabilities at amortised cost are initially recognised at fair value net of any transaction costs directly attributable to the issue of the instrument. Such interest bearing liabilities are subsequently measured at amortised cost using the effective interest rate method, which ensures that any interest expense over the period to repayment is at a constant rate on the balance of the liability carried into the statement of financial position.

Creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers.

Trade creditors are non-interest bearing and are normally settled within 60 days payment terms. All other creditors are non-interest bearing and settled within the payment terms specified.

Impairment of non-financial assets

The Company assesses at each reporting date whether there is an indication that an asset or cash generating unit may be impaired. If such an indication exists, or when annual impairment for an asset is required, the Company makes an estimate of the asset's recoverable amount in order to determine the extent of the impairment loss. An asset's recoverable amount is the higher of an asset's fair value less costs to sell and its value in use and is determined for an individual asset, unless the asset does not generate cash inflow that are largely independent of those from other assets or group of assets. If it is not possible to estimate the recoverable amount of the individual asset, the Company estimates the recoverable amount of the cash generating unit to which the asset belongs.

Where the carrying value of an asset or cash generating unit exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount. Impairment losses on continuing operations are recognised in the profit or loss account. An impairment loss recognised for all assets, excluding goodwill, is reversed in a subsequent period if, and only if, the reasons for the impairment loss have ceased to apply. A reversal of impairment loss is recognised immediately in profit or loss.

Provisions

Provisions are made where an event has taken place that gives the company a legal or constructive obligation where it is probable a settlement is required by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.

Provisions are charged as an expense to the Income Statement in the year that the company becomes aware of the obligation, and are measured at the best estimate at the reporting date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Dividends

Dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

Holiday pay accrual

A liability is recognised to the extent of any unused holiday pay entitlement which is accrued at the balance sheet date and carried forward to future periods. This is measured at the undiscounted salary cost of the future holiday entitlement so accrued at the balance sheet date.

Defined contribution pension obligation

The company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the company pays fixed contributions into a separate entity. Once the contributions have been paid the company has no further payment obligations.

The contributions are recognised as an expense in die Income Statement when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of Financial Position. The assets of the plan are held separately from the company in independently administered funds.

Defined benefit pension obligation

The company is a participating employer of two defined benefit pension plans, one in the UK, the McGraw Hill (UK) Retirement Benefits Plan (1973) ("UK Defined Benefit Pension Plan"), and one in Germany, Standard & Poor's Global Ratings Europe Ltd ("German Defined Benefit Pension Plan"). Both plans are closed to new members.

The cost of providing benefits under the defined benefit plan is determined separately for each plan using the projected unit method, which attributes entitlements to benefits to the current period (to determine current service cost) and to the current and prior period (to determine the present value of defined benefit obligations) and is based on actuarial advice. Past service costs are recognised in the Income Statement on a straight line basis over the vesting period or immediately if the benefits have vested. When a settlement or curtailment occurs, the change in the present value of the scheme liabilities and the fair value of the plan assets reflects the gain or loss which is recognised in the income statement. Losses are measured at the date that the employer becomes demonstrably committed to the transaction, and gains are measured when all parties whose consent is required are irrevocably committed to the transaction.

The interest element of the defined benefit cost represents the change in present value of the scheme obligations relating to the passage of time and is determined by applying the discount rate to the opening present value of the obligations, taking into account material changes in the obligation during the year. The expected return on plan assets is based on the scheme assets at the beginning of the year, adjusted for the effect on the fair value of plan assets of contributions received and benefits paid during the year, applying the discount rate for the period.

The difference between the actual return on scheme assets and expected return on assets during the year is recognised in other comprehensive income as a remeasurement.

Actuarial gains and losses are recognised in full in other comprehensive income in the period in which they occur.

The defined benefit pensions asset or liability at the balance sheet date comprises the total of the present value of the defined benefit obligation (using a discounted rate based on high quality corporate bonds that have been rated at AA or equivalent status), less any past service cost not yet recognised and less the fair value of plan assets out of which the obligations are to be settled directly. Fair value is based on market price information and, in the case of quoted securities, is the published mid market price. The value of any net pension asset is limited to the amount that may be recovered through reduced contributions.

Share based payments

The cost of equity-settled transactions with employees is measured by reference to the fair value at the date at which they are granted and is recognised as an expense over the vesting period, which ends on the date on which the relevant employees become fully entitled to the award. Fair value is determined by an external valuer using an appropriate pricing model. In valuing equity settled transactions, no account is taken of any vesting conditions, other than conditions linked to the price of the shares of the company (market conditions) which issues the shares.

No expense is recognised for awards that do not ultimately vest, except for awards where vesting is conditional upon a market condition, which are treated as vested irrespective of whether or not the market condition is satisfied, provided that all other performance conditions are satisfied.

At each balance sheet date before vesting, the cumulative expense is calculated, representing the extent to which the vesting period has expired and management's best estimate of the achievement or otherwise of non-market conditions numbers of equity instruments that will ultimately vest or, in the case of an instrument subject to a market condition, be treated as vesting as described above. The movement in cumulative expense since the previous balance sheet date is recognised in the Income Statement, with the corresponding entry in reserves.

Where the terms of an equity-settled award are modified or a new award is designated as replacing a cancelled or settled award, the cost based on the original award terms continues to be recognised over the original vesting period. In addition, an expense is recognised over the remainder of the new vesting period for the incremental fair value of any modification, based on the difference between the fair value of the original award and the fair value of the modified award, both as measure on the date of modification. No reduction is recognised if this difference is negative.

Where an equity-settled award is cancelled, it is treated as if it had vested on the date of cancellation, and any cost not yet recognised in the income statement for the award is expensed immediately. Any compensation paid up to the fair value of the award at the cancellation or settlement date is deducted from reserves, with any excess over fair value being treated as an expense in the Income Statement.

Non-current assets held for sale and discontinued operations

The Company classifies non-current assets and disposal groups as held for sale if their carrying amounts will be recovered principally through a sale transaction rather than through continuing use. Non-current assets and disposal groups classified as held for sale are measured at the lower of their carrying amount and fair value less costs to sell.

A disposal group qualifies as discontinued operation if it is a component of an entity that either has been disposed of, or is classified as held for sale, and:

•	Represents a separate major line of business or geographical area of operations
•	Is part of a single co-ordinated plan to dispose of a separate major line of business or geographical area of operations
•	Discontinued operations are excluded from the results of continuing operations and are presented separately in the statement of profit or loss.

3 Critical accounting judgements and key sources of estimation uncertainty

The following estimates and judgements have been determined in applying accounting policies for the financial year. Estimates have been applied to all the below accounting policies excluding income taxes which involves judgement.

Impairment of goodwill

Impairment exists when the carrying value of a cash generating unit exceeds its recoverable amount, which is the higher of its fair value less costs of disposal and its value in use. The value in use calculation is based upon a discounted cash flow model. The cash flows are derived from the budget for the next year extrapolated to a terminal value, and the recoverable amount is sensitive to the discount rates used for the discounted cash flow model as well as the expected future cash inflows and the growth rate used for extrapolation purposes.

Income taxes

Uncertainties exist with respect to the interpretation of complex tax regulations, changes in tax laws, and the amount and timing of future taxable income. Given the wide range of international business relationships and the long term nature and complexity of existing contractual agreements, differences arising between the actual results and the assumptions made, or future changes to such assumptions, could necessitate future adjustments to tax income and expense already recorded.

Expected credit losses

The provision against trade debtors is calculated using a three year average run rate of invoices written off based upon their invoice ageing, and is applied to the trade debtor balance as at year end.

Defined benefit pension scheme

The cost of the defined benefit pension plan and the present value of the pension obligation are determined using actuarial valuations. An actuarial valuation involves making various assumptions that may differ from actual developments in the future. These include the determination of the discount rate, future salary increases, mortality rates and future pension increases. Due to the complexities involved in the valuation and its long term nature, a defined benefit obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at each reporting date.

In determining the appropriate discount rate, management considers the interest rates of corporate bonds in currencies consistent with the currencies of post employment benefit obligation with at least an 'AA' rating or above, as set by an internationally recognised rating agency, and extrapolated as needed along the yield curve to correspond with the expected term of the defined benefit obligation.

The mortality rate is based on publicly available mortality rates for specific countries. Future salary increases and pension increases are based on expected future inflation rates for the respective countries.

Share based payments

The company uses a lattice based option pricing model to estimate the fair value of stock options granted, incorporating a range of assumptions. These assumptions are based on multiple factors, including historical exercise patterns, post vesting termination rates, expected future exercise patterns and expected volatility of S&P Global Inc.'s share price. The risk free interest rate is the imputed forward rate based on the U.S. Treasury yield at the date of grant. The company uses the historical volatility of the S&P Global Inc. stock price over the expected term of the options to estimate the expected volatility. The expected term of options granted is derived from the output of the lattice model and represents the period of time that options granted are expected to be outstanding.

4 Turnover

The analysis of the Company's turnover for the year by class of business is as follows:

	2020	2019
	€ 000	€000
Credit rating activity	642,907	575,473
Non credit rating activity	5,754	4,671
Endorsement fees	63,720	65,921
Service fees	1,108	792
	713,489	646,857

The analysis of the Company's turnover for the year by country of destination is as follows:

	2020	2019
	€000	€000
Europe	454,103	491,891
Rest of world	259,386	154,966
	713,489	646,857

5 Other gains and losses

The analysis of the company's other gains and losses for the year is as follows:

	2020	2019
	€ 000	€000
Accounting gain on the sale of the UK branch	831,867	-
See note 26 for more information on the sale of the UK branch.

6 Operating profit

Arrived at after charging/(crediting)

	2020	2019
	€000	€000
Depreciation expense	957	1,537
Depreciation on right of use assets	5,942	4,130
Interest expense on lease liabilities	380	219
Foreign exchange loss	7,846	8,352

7 Interest receivable and similar income

	2020	2019
	€000	€000
Interest receivable from group undertaking	258	1,458
	258	1,458

8 Interest payable and similar expenses

	2020	2019
	€000	€000
Interest expense payable to group undertakings	5,750	18,211
	5,750	18,211

9 Pension costs

	2020	2019
	€ 000	€000
Net interest on net defined benefit liability	722	925
	722	925

10 Employee information

The aggregate payroll costs (including directors' remuneration) were as follows:

	2020	2019
	€000	€000
Wages and salaries	128,448	125,898
Social security costs	13,587	15,046
Pension costs, defined contribution scheme	8,202	6,928
Share-based payment expenses	5,311	5,402
	155,548	153,274

The monthly average number of persons employed by the company (including directors) during the year was as follows:

	2020 No.	2019 No.
France	122	120
Germany	88	87
Ireland	20	20
Italy	31	31
Poland	5	4
Russia	40	45
Saudi Arabia	2	2
South Africa	10	10
Spain	53	51
Sweden	29	29
United Arab Emirates	27	27
United Kingdom	357	314
	784	740

11 Directors' remuneration

The directors' remuneration for the financial year was as follows:	2020	2019
	€000	€000
In respect of qualifying services	2,633	2,060
Amounts paid in respect of defined contribution schemes	374	302
	3,007	2,362

During the year retirement benefits were accruing to 2 directors in respect of defined contribution pension schemes.

The highest paid director received remuneration of €1,534,206 during the year (2019: €1,016,000).

Two directors are member of the share based payment plan operated by S&P Global Inc. The total amount recognised in respect of employee services received during the year was €374,065 (2019:€301,602). One director exercised stock options of €529,560 during the year in respect of the share based payment plan operated by S&P Global Inc.

12 Auditors' remuneration

	2020	2019
	€000	€000
Audit of the financial statements	316	326

Other fees to auditors

	2020	2019
	€ 000	€000
Tax compliance services	30	28

13 Income tax

Tax charged/(credited) in the income statement

	2020	2019
	€000	€000
Current taxation
Corporation tax for the period	46,351	40,158
Corporation tax adjustment to prior periods	659	(5)
Double taxation relief	(33,622)	(31,128)
	13,388	9,025
Foreign tax	64,935	57,794
Foreign tax adjustment to prior periods	1,030	(1,263)
	65,965	56,531
Total current income tax	79,353	65,556
Deferred taxation
Arising from changes in tax rates and laws	763	29
Arising from previously unrecognised tax loss, tax credit or temporary difference of prior periods	(2,029)	(286)
Tax underprovided/(overprovided) for in earlier periods	814	77
Total deferred taxation	(452)	(180)
Tax expense in the income statement	78,901	65,376

Deferred tax balances have been calculated at the rate at which temporary differences are expected to unwind.

The effective tax rate on profits before tax for the year is lower than the standard rate of corporation tax in the Republic of Ireland (2019 - the effective tax rate was higher than the standard rate of corporation tax in the Republic of Ireland) of 12.5% (2019:12.5% ). The differences are reconciled below:

	2020	2019
	€000	€000
Profit before tax	1,194,765	321,097
Corporation tax at standard rate	149,346	40,137
Increase/(decrease) in current tax from adjustment for prior periods	659	(5)
Tax effect of amounts which are not taxable	(102,987)	21
Increase from effect of foreign tax rates	62,898	57,508
Decrease from effects of double taxation relief	(33,622)	(31,128)
Increase in deferred tax from adjustment from prior period	814	77
Increase/(Decrease) in foreign tax from adjustment for prior periods	1,030	(1,263)
Deferred tax expense relating to changes in tax rates or laws	763	29
Total tax charge	78,901	65,376

Tax on items not charged/(credited) to the Income Statement

	2020	2019
	€000	€000
Actuarial gain/(loss) on pension scheme	(1,503)	(2,453)
Current tax movements on share based payment	1,008	1,055
Deferred tax movements on share based payments	(302)	(1,532)
	(797)	(2,930)

Deferred tax

Deferred tax assets and liabilities

	Asset
2020	€000
Share-based payment	1,199
Accelerated tax depreciation	19
Provisions	2,874
Other post-employment benefits	1,542
Defined benefit pension scheme	15,182
	20,816

	Asset
2019	€000
Share-based payment	3,693
Accelerated tax depreciation	14
Provisions	3,354
Other post-employment benefits	1,528
Defined benefit pension scheme	13,208
	21,797

Deferred tax movement during the year:

	At 1 January 2020	Recognised in income	Recognised in other comprehensive income	Recognised in equity	At 31 December 2020
	€ 000	€ 000	€ 000	€ 000	€ 000
Share-based payment	3,693	(1,788)	-	(706)	1,199
Accelerated tax depreciation	14	5	-	-	19
Provisions	3,354	(480)	-	-	2,874
Other post-employment benefits	1,528	14	-	-	1,542
Defined benefit pension scheme	13,208	471	1,503	-	15,182
Net tax assets/(liabilities)	21,797	(1,778)	1,503	(706)	20,816

Deferred tax movement during the prior year:

	At 1 January 2019	Recognised in income	Recognised in other comprehensive income	Recognised in equity	At 31 December 2019
	€ 000	€ 000	€ 000	€ 000	€ 000
Share-based payment	3,923	(706)	-	476	3,693
Accelerated tax depreciation	14	-	-	-	14
Provisions	3,461	(107)	-	-	3,354
Other post-employment benefits	1,315	213	-	-	1,528
Defined benefit pension scheme	9,974	781	2,453	-	13,208
Net tax assets/(liabilities)	18,687	181	2,453	476	21,797

14 Intangible assets

	Goodwill
	€000
Cost
At 1 January 2019	330,085
At 31 December 2019	330,085
At 1 January 2020	330,085
Transferred to S&P Global Ratings UK Limited (refer to note 25)	(219,467)
At 31 December 2020	110,618
Carrying amount
At 31 December 2020	110,618
At 31 December 2019	330,085

Goodwill is reviewed annually for impairment by comparing its carrying amount with its recoverable amount, with any impairment in carrying value being charged to profit or loss. This is a departure from the requirements of the Companies Act 2014 which requires amortisation of goodwill. However, the departure is necessary in order that the financial statements show a true and fair view, as the carrying value of goodwill is not considered to reduce gradually over its life.

As per IFRS 3 "Business Combinations", where goodwill forms part of a cash-generating unit and part of the operation within that unit is disposed of, the goodwill associated with the operation disposed of is included in the carrying amount of the operation when determining the gain or loss on disposal of the operation. Goodwill disposed of in this circumstance is measured based on the relative values of the operation disposed of and the portion of the cash generating unit retained. Thus, the UK portion of goodwill of €219,467,000 in S&P Global Ratings Europe Limited has been transferred as part of the sale of the UK branch from S&P Global Ratings Europe Limited to S&P Global Ratings Limited.

Cash generating units

Goodwill is allocated to the company's cash generating units as follows:

	2020
	€000
Spain	74,162
Germany	34,800
United Arab Emirates	1,238
South Africa	418
	110,618

This represents the lowest level within the Company at which goodwill is monitored for internal management purposes. The recoverable amount by office has been determined on a value in use basis using cash flow projections based upon extrapolated financial budgets.

The calculation of value in use for cash generating units ("CGUs") is most sensitive to the following assumptions:

•	Gross margin
•	Discount rate
•	Growth rates used to extrapolate cash flows beyond the budget period

Gross margins are based upon annual financial budgets which are finalised at the start of the year. The revenue reflects management's best estimate of what the prevailing market conditions are likely to be through the year ahead and their impact. The expense component takes into account the cost of supporting those revenue generating activities and any initiatives identified by management.

Discount rates reflect management's estimate of weighted average cost of capital ("WACC"). WACC is based upon country specific assumptions including risk free rate, equity risk premium, and country risk premium, as well as industry specific assumptions that include relevered beta and debt/capital ratios.

Growth rates are based upon targets set by global business management which the local business is tasked with achieving through a combination of revenue growth and/or expense reduction. The growth rate applied to future cash flows beyond the budgets set is 3%, which represents management's best estimate of the anticipated growth given prevailing market conditions.

Management has determined a terminal value when extrapolating cash flow projections as it is anticipated the cash generating units will continue for the long term future. The Ratings business is the world's leading provider of credit ratings and has been established for over one hundred years. For those CGUs operating in mature markets (Spain and Germany), the offices have been long established in their respective countries and enjoy large market share. For those CGUs operating in developing markets (UAE and South Africa), the offices enjoy large market share as a result of brand reputation and being first to market, with the expectation that these financial markets will continue to develop and grow for the foreseeable future.

15 Tangible assets

	Leasehold improvements	Furniture, fittings and equipment	Motor vehicles	Total
	€000	€000	€000	€ 000
Cost
At 1 January 2020	10,377	4,901	25	15,303
Additions	604	577	-	1,181
Disposals	(171)	(10)	-	(181)
Transfers	(484)	(180)	-	(664)
Foreign exchange movements	(493)	(114)	(6)	(613)
At 31 December 2020	9,833	5,174	19	15,026
Depreciation
At 1 January 2020	7,862	3,157	12	11,031
Charge for the year	532	422	4	958
Disposal	(358)	(8)	-	(366)
Transfers	(145)	(188)	-	(333)
Foreign exchange movements	(393)	(100)	(3)	(496)
At 31 December 2020	7,498	3,283	13	10,794
Carrying amount
At 31 December 2020	2,335	1,891	6	4,232
At 31 December 2019	2,515	1,744	13	4,272

16 Right of use assets

The company has lease contracts for various offices, vehicles and equipment used in its operations.

	Property	Other	Total
	€000	€000	€000
Cost or valuation
At 1 January 2020	27,194	271	27,465
Additions	5,015	37	5,052
At 31 December 2020	32,209	308	32,517
Depreciation
At 1 January 2020	4,027	103	4,130
Charge for the year	5,812	130	5,942
At 31 December 2020	9,839	233	10,072
Carrying amount
At 31 December 2020	22,370	75	22,445
At 31 December 2019	23,167	168	23,335

Set out below are the carrying amounts of lease liabilities (included under trade creditors, loans, borrowings and creditors amounts falling due after more than one year) and the movements during the period:

	2020	2019
	€000	€000
As at 1 January	23,296	27,491
Additions	5,052	-
Accretion of Interest	380	219
Payments	(5,749)	(4,414)
As at 31 December	22,979	23,296
Current lease liabilities	4,972	4,188
Non current lease liabilities	18,007	19,108

The following are the amounts recognised in profit or loss:

	2020	2019
	€000	€000
Depreciation expense of right of use assets	5,942	4,130
Interest expense on lease liabilities	380	219
	6,322	4,349

The maturity profile of the Company's lease liabilities based on contractual undiscounted payments as at 31 December are as follows:

	2020	2019
	€000	€000
Within one year	5,100	4,440
After one year but not more than five years	16,810	17,727
More than five years	1,495	3,926
	23,405	26,093

17 Loan notes receivable

	2020	2019
	€000	€000
Loan notes	771,566	-
	771,566	-

Loan notes includes an amount of GBP 699,912,135 (EUR 771,566,340) to S&P Global Ratings Europe Limited, for the purchase of the UK branch of S&P Global Ratings Europe Limited. The loan notes are detailed as follows:

•	GBP 150,000,000 (EUR 165,356,400) 3 year bond at a rate of 1.249% per annum.
•	GBP 200,000,000 (EUR 220,475,200) 5 year bond at a rate of 1.572% per annum.
•	GBP 300,000,000 (EUR 330,712,800) 10 year bond at a rate of 2.211% per annum.
•	GBP 49,912,135 (EUR 55,021,940) 3 year bond at a rate of 2.608% per annum.

18 Trade and other debtors

	2020	2019
	€000	€000
Trade debtors	85,805	98,364
Amounts owed by group undertakings	642,287	348,378
Prepayments	11,543	10,347
Deferred tax asset	20,816	21,797
	760,451	478,886

Amounts owed by group undertakings are unsecured, interest free, and repayable on demand.

19 Cash and cash equivalents

	2020	2019
	€ 000	€000
Cash at bank	22,945	57,240

20 Trade creditors, loans and borrowings

	2020	2019
	€000	€000
Trade creditors	325	1,498
Accrued expenses	160,042	173,716
Amounts due to group undertakings	28,387	24,823
Income tax liability	12,131	12,215
Social security and other taxes	5,965	10,354
Loan notes	-	295,986
Current portion of long term lease liabilities	4,972	4,188
	211,822	522,780

Amounts owed to group undertakings are unsecured, interest free, and repayable on demand.

Loan Notes were made up of two unsecured loan notes for £230,000,000 and £26,867,000. Both loans were repaid on their 10 anniversary, being 1 April 2020 and June 2020 respectively. Interest was accured on both loans at a rate of 6% per annum and was paid annually in arrears.

21 Creditors: amounts falling due after more than one year

	2020	2019
	€000	€000
Non current lease liabilities	18,007	19,108
	18,007	19,108

22 Pension and other schemes

Defined contribution pension scheme

The Company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the Company to the plan and amounted to €8,201,000 (2019: €6,928,000)

Defined benefit pension schemes

The McGraw Hill (UK) Retirement Benefits Plan (1973)

The Company is a sponsoring employer of the McGraw-Hill (UK) Retirement Benefits Plan (1973) (the Plan), which is a defined benefit pension plan.

The Plan is self-administered and funded to cover past and future pension liabilities, including pension increases in respect of services up to the balance sheet date. The Plan is subject to independent valuations at least every three years, on the basis of which a qualified actuary certifies that the rate of the employer's contributions, together with the specified contributions payable by the employees and proceeds from the Plan's assets, are sufficient to fund the benefits payable under the Plan. The assets of the Plan are held in separately administered funds.

A deed of amendment was made on 29 April 2013 that members of the Plan will not accrue any further pensionable service after 30 April 2013.

As at 31 December 2020, the UK defined pension plan's assets and liabilities were transferred to S&P Global Ratings Limited and S&P Global Ratings Europe Limited assumed the role as a sponsoring entity.

The date of the most recent comprehensive actuarial valuation was 30 June 2017.

Reconciliation of scheme assets and liabilities to assets and liabilities recognised

The amounts recognised in the statement of financial position are as follows:

	2020	2019
	€000	€000
Fair value of scheme assets	-	25,109
Present value of scheme liabilities	-	(21,507)
	-	3,602
Other amounts not recognised in the statement of financial position	-	(3,602)
Defined benefit pension scheme surplus/(deficit)	-	-

The movement in the pension surplus on UK defined benefit plan during the year is €3,602,000 which has been presented in the Statement of Comprehensive income.

Scheme assets

Changes in the fair value of scheme assets are as follows:

	2020	2019
	€000	€000
Fair value at start of year	25,109	19,308
Interest income	-	556
Return on plan assets less than discount rate	-	4,130
Foreign exchange differences	-	1,115
Transferred to S&P Global Ratings UK Limited	(25,109)	-
Fair value at end of year	-	25,109

Analysis of assets

The major categories of scheme assets are as follows:

	2020	2019
	€000	€000
Scheme assets held in equities	-	13,643
Scheme assets held in other assets	-	7,345
Scheme assets held in cash	-	2,261
Scheme assets held in property	-	1,860
	-	25,109

UK defined benefit pension plan assets do not include any of the Company's own financial instruments or property occupied by the Company.

The expected return on scheme assets is determined by considering the expected returns available on the assets underlying the current investment policy. Expected yields on fixed interest investments are based on gross redemption yields as at the balance sheet date. Expected returns on equity and other non fixed interest investment reflect long term real rates of return experience in the respective markets.

Actual return on scheme's assets

The actual return on scheme assets during the year was nil (2019: €Nil)

Scheme liabilities

Changes in the present value of scheme liabilities are as follows:

	2020	2019
	€000	€000
Present value at start of year	21,507	17,779
Actuarial gains and losses arising from changes in demographic assumptions	-	(940)
Actuarial gains and losses arising from changes in financial assumptions	-	2,456
Actuarial gains and losses arising from experience adjustments	-	674
Forex exchange differences	-	1,027
Interest cost	-	511
Transferred to S&P Global Ratings UK Limited	(21,507)	-
Present value at end of year	-	21,507

Principal actuarial assumptions

The significant actuarial assumptions used to determine the present value of the defined benefit obligation at the statement of financial position date are as follows:

	2020 %	2019 %
Retail Price Inflation	-	2.90
Consumer Price Inflation	-	2.23
Rate of increase for pension in payment	-	2.75
Rate of increase for pension in deferment	-	2.23
Rate used to discount plan's liabilities	-	1.92

Post retirement mortality assumptions

	2020 Years	2019 Years
Current pensioners at retirement age - male	-	23.2
Current pensioners at retirement age - female	-	25.2
Future pensioners at retirement age - male	-	24.9
Future pensioners at retirement age - female	-	27.0

Amounts recognised in the income statement

	2020	2019
	€000	€000
Amounts recognised in operating profit
Recognised in arriving at operating profit	-	-
Amounts recognised in finance income or costs
Recognised in other finance cost	-	-
Total recognised in the income statement	-	-

Amounts taken to the Statement of Comprehensive Income

	2020	2019
	€000	€000
Actuarial gains and losses due to liability experience	-	674
Actuarial gains and losses due to liability assumption changes	-	1,516
Return on plan assets (greater)/less than discount rate	-	(4,130)
Change in irrecoverable surplus	-	1,940
Amounts recognised in the Statement of Comprehensive Income	-	-

Sensitivity analysis

A sensitivity analysis for the principal assumptions used to measure scheme liabilities is set out below:

	2020
	+ 0.1%	0.0%	- 0.1%
Adjustment to discount rate	€ 000	€ 000	€ 000
Present value of total obligation	-	-	-

	2019
	+ 0.1%	0.0%	- 0.1%
Adjustment to discount rate	€000	€ 000	€000
Present value of total obligation	12,307	21,507	30,707

	2020
Adjustment to rate of	+ 0.1%	0.0%	- 0.1%
inflation	€000	€000	€ 000
Present value of total obligation	-	-	-

	2019
Adjustment to rate of	+ 0.1%	0.0%	- 0.1%
inflation	€000	€ 000	€000
Present value of total obligation	14,907	21,507	28,107

The sensitivities allow for changes to the liabilities only, it is assumed that there is no impact on the assets. The sensitivities are based on the liability structure at the time of the 31 December 2020.

S&P Global Ratings Europe Ltd

The Company is a sponsoring employer of the German defined benefit pension plan, which is an unfunded defined benefit top up scheme. The liabilities of the German defined benefit pension plan in respect of pre 1 July 2010 service were transferred to the S&P Credit Market Services Limited ("Ratings UK"). Accordingly, the liabilities of the German defined benefit pension plan as at 30 June 2018 was transferred to the Company subsequent to the legal merger of Ratings UK with the Company. Following this, the Company assumed the role as the participating employer of the German defined benefit pension plan.

For IAS 19 purposes, a valuation of the German defined pension plan as at 31 December 2020 was made by a qualified actuary.

Reconciliation of scheme assets and liabilities to assets and liabilities recognised

The amounts recognised in the statement of financial position are as follows:

	2020	2019
	€ 000	€000
Present value of scheme liabilities	(63,629)	(56,015)

Scheme liabilities

Changes in the present value of scheme liabilities are as follows:

	2020	2019
	€000	€000
Present value at start of year	56,015	45,552
Current service cost	2,308	1,963
Actuarial gains and losses arising from changes in financial assumptions	6,440	9,579
Actuarial gains and losses arising from experience adjustments	(1,734)	(1,895)
Interest cost	122	925
Benefit paid directly by the company	(122)	(109)
Present value at end of year	63,629	56,015

Principal actuarial assumptions

The significant actuarial assumptions used to determine the present value of the defined benefit obligation at the statement of financial position date are as follows:

	2020	2019
	%	%
Rate of salary increase	1.80	1.80
Rate of increase for pensions in payment	.84	1.24

Post retirement mortality assumptions

	2020 Years	2019 Years
Current pensioners at retirement age - male	20.3	20.2
Current pensioners at retirement age - female	23.8	23.7
Future pensioners at retirement age - male	23.1	23.0
Future pensioners at retirement age - female	26.0	25.9

Amounts recognised in the income statement

	2020	2019
	€000	€000
Amounts recognised in operating profit
Current service cost	2,308	1,963
Net interest on net defined benefit liability	722	925
Recognised in arriving at operating profit	3,030	2,888
Amounts recognised in finance income or costs
Recognised in other finance cost	-	-
Total recognised in the income statement	3,030	2,888

Amounts taken to the Statement of Comprehensive Income

	2020	2019
	€000	€000
Actuarial gains and losses due to liability experience	(1,734)	(1,895)
Actuarial gains and losses due to liability assumption changes	6,440	9,579
Amounts recognised in the Statement of Comprehensive Income	4,706	7,684

The movements in the Germany defined benefit plan during the year was an increase of €5,422,000 which has been presented in the Statement of Comprehensive Income.

Sensitivity analysis

A sensitivity analysis for the principal assumptions used to measure scheme liabilities is set out below:

	2020
	+1%	0.0%	-1%
Adjustment to discount rate	€ 000	€ 000	€ 000
Present value of total obligation	49,029	63,629	84,229

	2019
	+ 1%	0.0%	-1%
Adjustment to discount rate	€000	€ 000	€000
Present value of total obligation	43,115	56,015	68,915

	2020
Adjustment to rate of	+1%	0.0%	-1%
inflation	€ 000	€ 000	€ 000
Present value of total obligation	47,129	63,629	76,029

	2019
Adjustment to rate of	+ 1%	0.0%	-1%
inflation	€000	€ 000	€000
Present value of total obligation	41,315	56,015	70,715

The sensitivities allow for changes to the liabilities only. The sensitivities are based on the liability structure at the time of the 31 December 2020.

23 Share-based payments

The Company participates in various share based payment plans operated by S&P Global Inc., the ultimate parent undertaking. The Company's two main plans are the general share option plan and the restricted performance share option plan. Details of these plans are contained in the group's Annual Report.

Stock options

Scheme details and movements

Stock options may not be granted at a price less than the fair market value of S&P Global Inc. common stock on the date of the grant. Stock options granted in 2013 and thereafter vest over a three year service period in equal annual instalments and have a maximum term of 10 years. Stock option compensation costs for 2013 grants are recognised from the date of grant, utilising a three year graded vesting method. Under this method, one third of the costs are ratably recognised over the first twelve months, one third of the costs are ratably recognised over a twenty four month period starting from the date of grant with the remaining costs ratably recognised over a thirty six month period starting from the date of grant.

Stock options granted in 2011 and prior years vest over a two year service period in equal instalments and have a maximum term of 10 years. Stock option compensation costs for 2011 and prior year's grants are recognised from the date of grant, utilising a two year graded vesting method. Under this method, fifty percent of the costs are rateable recognised over the first twelve months with the remaining costs rateably recognised over a twenty four month period starting from the date of grant. In 2012, 2015, 2016 and 2017 stock options were not granted as part of employees' total stock based incentive awards.

Restricted Stock and unit awards

Scheme details and movements

Restricted stock and unit awards (performance and non performance) have been granted under the 2020 Plan. Restricted stock and unit performance awards will vest only if S&P Global Inc. achieves certain financial goals over the performance period. Restricted stock non performance awards have various vesting periods (generally three years), with vesting beginning on the first anniversary of the awards. Recipients of restricted stock and unit awards are not required to provide consideration to the company other than rendering service.

The stock based compensation expense for restricted stock and unit awards is determined based on the market price of S&P Global Inc. stock at the grant date of the award applied to the total number of awards that are anticipated to fully vest. For restricted stock and unit performance awards, adjustments are made to expense dependent upon financial goals achieved.

The expenses recognised for share based payments in respect of employee services received during the period were €5,310,731 (2019: €5,401,755).

24 Issued share capital presented as equity

	2020	2019
	€000	€000
3,000 Ordinary Shares of €1 each	3	3

25 Reserves

Merger Reserve

The merger reserve of € 2,309,259,000 was created in 2018 in the books of the company to recognise the excess amount through the transfer over the net assets of S&P Credit Market Services Europe Limited ("Ratings UK"), S&P Global Ratings France SAS ("Ratings France") and S&P Global Ratings Italy S.r.l ("Ratings Italy"). This was recorded as a debit to the reserves of the company.

As at 31 December 2020, the UK branch was disposed of and the merger reserve was reduced by € 1,001,540,000 to € 1,307,719,000.

Other Reserve

Other reserve of €76,482,000 relates to the group reconstruction relief applied to the Spanish office business combination on 1 September 2010 as per the Companies Act 14 section 611. The amount held in this reserve is equal and opposite to the carrying value of goodwill relating to the Spanish office. Transfers from this reserve to retained earnings will occur when an impairment to goodwill is recognised.

Retained earnings

Movements relating to the defined benefit pension scheme, foreign exchange on translation of non presentational currencies, share based payments, and profit or loss for the period are recognised through this reserve of €2,630,033,000.

As at 31 December 2020, the retained earnings include the realisation of the merger reserve.

26 Disposals

The UK left the European Union ("EU") on 31 January 2020 and entered into an 11-month transition period which ended on 31 December 2020. The European Securities and Markets Authority ("ESMA") continues to maintain regulatory oversight over European credit ratings issued by S&P Global Ratings Europe Limited, while the Financial Conduct Authority ("FCA") has responsibility for regulatory oversight of UK credit ratings agencies and for ratings that are issued out of the UK. Due to the dual requirements for European and UK credit ratings to be regulated by ESMA and the FCA respectively, S&P Global Ratings UK Limited ("SPGRUK"), a company incorporated in England and Wales, was established to maintain UK ratings. SPGRUK purchased the assets and liabilities, excluding cash, of the UK branch of S& P Global Ratings Europe Limited. This transaction took place at 23:00 GMT on 31 December 2020.

The net assets of S&P Global Ratings Europe Limited, UK Branch at the date of disposal are as set out below:

	Fair value at 31 December 2020
	€000
Assets and liabilities disposed of:
Property, plant and equipment	393
Trade receivables	52,509
Other assets	2,235
Trade payables	(1,244)
Other liabilities	(81,044)
Attributable goodwill	219,467
	192,316

The goodwill balance disclosed above pre-dates the acquisition of the UK business by the Company. No additional goodwill was recognised on the balance sheet when the Company acquired the UK business on 30 June 2018. A merger reserve of €1,001,540,000 was recorded at the time of the acquisition to reflect the difference between the purchase price allocated to the UK business and the balance sheet net asset position.

The equity of S&P Global Ratings Europe Limited, UK Branch at the date of disposal included stock options of €26,886,072.

Satisfied by:
Cash and cash equivalents received	265,362
Loan notes receivable	779,412
Total consideration	1,044,774
Cash flow analysis:
Cash consideration received	265,362

An accounting profit of €831,867,000 arose on the disposal of S&P Global Ratings Europe Limited, UK Branch, calculated as the proceeds of disposal less the balance sheet carrying amount of the subsidiary's net assets and attributable goodwill.

27 Related party transactions

The Company has taken advantage of the exemption under paragraph 8(k) of the 'FRS 101 Reduced Disclosure Framework' from disclosure of related party transactions with other wholly owned fellow subsidiaries of S&P Global Inc.

During the year the Company recharged costs of €5,565 (2019: €329) to S&P Global Indices UK Limited and €352,825 (2019: €521,400) to S&P DJ Indices UK Limited, both of which are fellow subsidiaries not wholly owned by S&P Global Inc.

At 31 December 2020 the Company was owed €Nil (2019: €25,422) by CRISIL Limited.

28 Parent and ultimate parent undertaking

The immediate parent undertaking of the company is S&P Global European Holdings Luxembourg S.a.r.l., a company incorporated in Luxembourg.

The directors regard S&P Global Inc., a company incorporated in the State of New York, United States of America, as the company's ultimate parent undertaking and controlling party. This is also the parent undertaking of the smallest and largest group of undertakings for which group financial statements are drawn up and of which the company is a member. Copies of the group financial statements of S&P Global, Inc. can be obtained from:

Fourth Floor

Waterways House

Grand Canal Quay

Dublin 2

D02 NF40

They are also available at the global website (https://www.spglobal.com/).