Sam Boughedda

Shares of S&P Global (NYSE:) opened over 10% lower Wednesday after it announced it is suspending financial guidance for the full-year 2022. Since then, shares have recover much of the losses. Last trading was down 2.6%.

Financial firm stated that the withdrawal of guidance was due to deteriorating macroeconomic conditions, which have negatively affected the company’s forecasts for growth in GDP and the volume of debt issuance.

SPGI stated in a statement that “Given volatility and uncertainty surrounding the issuance environment,” the company could not affirm the guidance it had previously issued and would like to introduce formal financial guidance with the second quarter 2022 earnings results.

SPGI reported that debt volume has been “extraordinarily low” over the past year. If similar trends continue through the year market issuance may see a decline in the teens year-over year.

The authors explained, “Rated or billed, the issuance could have approximately 30-35% less than the previous-year, and leveraged loan volumes might be around 40% lower,”

This could result in ratings revenue being affected up to $600,000,000 more than previous guidance.

Jeffrey Silber, analyst at BMO Capital commented on the announcement that 2022 would see an adjusted EPS of $12 vs consensus $13.06 (roughly 8%)

The warning from S&P Global is also impacting shares of rival Moody’s (NYSE:), which is trading down 2.9% in early trading.

S&P Global CFO, Ewout Steenbergen, will be presenting at the Deutsche Bank (ETR: Global Financial Services Conference at 3.30 PM ET on Wednesday, will provide more insight into today’s warning.