Morningstar Buys DBRS, Raises Stakes in Credit Rating Battle (1)

Morningstar Inc. agreed to buy DBRS Ltd. for $669 million as the research company raises its stake to challenge the three largest credit rating firms.

The Chicago-based firm will finance the transaction with a mix of cash and debt, adding the world’s fourth-largest debt rating company to its equity research business. Toronto-based DBRS employs about 500 people, with annual revenue of $167 million.

Morningstar is expanding its credit rating business just as central banks including the Federal Reserve withdraw stimulus and slowing global growth raise concerns about rising corporate debt levels. DBRS, created in 1976, rates more than 2,400 companies ...