<PAGE>

------------------------------------------------------------------------------

                      SECURITIES AND EXCHANGE COMMISSION
                       WASHINGTON, D.C.  20549



                                   FORM 10-Q
                                       
                                       
              QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF
                      THE SECURITIES EXCHANGE ACT OF 1934
                                       
                      FOR THE QUARTER ENDED JUNE 30, 1998
                                       
                        COMMISSION FILE NUMBER 1-13286
                                ______________
                                       
                                       
                                       
                        DUFF & PHELPS CREDIT RATING CO.
            (Exact name of Registrant as specified in its Charter)
                                       
                                       
                                       
            ILLINOIS                                   36-3569514
       (State of Incorporation)                     (I.R.S. Employer
                                                   Identification No.)


55 EAST MONROE STREET, CHICAGO, ILLINOIS 60603            (312)368-3100
 (Address of principal executive offices)        (Registrant's telephone number)
                                       
                                       
                                       
                                       
Indicate by check mark whether the registrant (1) has filed all reports 
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 
1934 during the preceding 12 months (or for such shorter period that the 
Registrant was required to file such reports), and (2) has been subject to 
such filing requirements for the past 90 days.  Yes X   No __
                                                   ---
                                       
                                       
     On July 31, 1998, the registrant had 4,837,666 shares of common stock
                                 outstanding.
                                       
                                       
-------------------------------------------------------------------------------


<PAGE>

               DUFF & PHELPS CREDIT RATING CO. AND SUBSIDIARIES
                                       
                          Quarter Ended June 30, 1998
                                       
                                     Index



PART I. - FINANCIAL INFORMATION

ITEM 1.   CONSOLIDATED FINANCIAL STATEMENTS


          Consolidated Condensed Statements of Income                   1
               Three Months Ended June 30, 1998 and
               Three Months Ended June 30, 1997

          Consolidated Condensed Statements of Income                   2
               Six Months Ended June 30, 1998 and
               Six Months Ended June 30, 1997

          Consolidated Balance Sheets                                   3
               June 30, 1998 and December 31, 1997

          Consolidated Statements of Cash Flows                         4
               Six Months Ended June 30, 1998 and
               Six Months Ended June 30, 1997

          Notes to the Consolidated Financial Statements               5-7

ITEM 2.   MANAGEMENT'S DISCUSSION AND ANALYSIS OF
          RESULTS OF OPERATIONS AND FINANCIAL CONDITION                8-10

PART II. - OTHER INFORMATION

ITEM 4.   SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS           10

ITEM 6.   EXHIBITS AND REPORTS ON FORM 8-K                              10


<PAGE>

PART I.   FINANCIAL INFORMATION

ITEM 1.   CONSOLIDATED FINANCIAL STATEMENTS


                DUFF & PHELPS CREDIT RATING CO. AND SUBSIDIARIES

                 CONSOLIDATED CONDENSED STATEMENTS OF INCOME
                   (In Thousands, Except Per Share Data)
                               (Unaudited)

<TABLE>
<CAPTION>
                                                                       Three Months      Three Months
                                                                           Ended           Ended
                                                                          June 30,         June 30,
                                                                            1998            1997
                                                                        -----------      ------------
<S>                                                                     <C>               <C>
REVENUES (NOTE 1)                                                           $21,512          $16,894

EXPENSES
   Employment expense                                                         8,710            6,751
   Other operating expenses                                                   4,202            4,726
   Name usage fees--paid to former parent (Note 2)                              500              500
   Depreciation and amortization (Note 1)                                       702              538
                                                                        -----------      ------------
 Total expenses                                                              14,114           12,515

OPERATING INCOME                                                              7,398            4,379

  Other income                                                                   31               48
  Interest expense (Note 3)                                                      52               98
                                                                        -----------      ------------

EARNINGS BEFORE INCOME TAXES                                                  7,377            4,329

  Income taxes                                                                3,170            1,827
                                                                        -----------      ------------

NET EARNINGS                                                                 $4,207           $2,502
                                                                        -----------      ------------
                                                                        -----------      ------------

 Basic weighted average shares outstanding (Note 1)                           4,837            5,061

BASIC EARNINGS PER SHARE (NOTE 1)                                             $0.87            $0.49

Diluted weighted average shares outstanding (Note 1)                          5,290            5,597

DILUTED EARNINGS PER SHARE (NOTE 1)                                           $0.80            $0.45
</TABLE>


                                     -1-

               The accompanying notes to the consolidated financial statements
                     are integral part of these statements.

<PAGE>

                        DUFF & PHELPS CREDIT RATING CO. AND SUBSIDIARIES

                        CONSOLIDATED CONDENSED STATEMENTS OF INCOME
                          (In Thousands, Except Per Share Data)
                                        (Unaudited)

<TABLE>
<CAPTION>
                                                                              Six Months   Six Months
                                                                                Ended        Ended
                                                                               June 30,     June 30,
                                                                                 1998        1997
                                                                              ----------   ----------
<S>                                                                           <C>          <C>
REVENUES (NOTE 1)                                                               $43,283      $31,290

EXPENSES
   Employment expense                                                            17,520       12,877
   Other operating expenses                                                       8,338        7,666
   Name usage fees--paid to former parent (Note 2)                                1,000        1,000
   Depreciation and amortization (Note 1)                                         1,378        1,075
                                                                              ----------   ----------
 Total expenses                                                                  28,236       22,618

OPERATING INCOME                                                                 15,047        8,672

  Other income                                                                      242          226
  Interest expense (Note 3)                                                         194          217
                                                                              ----------   ----------

EARNINGS BEFORE INCOME TAXES                                                     15,095        8,681

  Income taxes                                                                    6,482        3,663
                                                                              ----------   ----------

NET EARNINGS                                                                     $8,613       $5,018
                                                                              ----------   ----------
                                                                              ----------   ----------

 Basic weighted average shares outstanding (Note 1)                               4,827        5,100

BASIC EARNINGS PER SHARE (NOTE 1)                                                 $1.78        $0.98

Diluted weighted average shares outstanding (Note 1)                              5,241        5,629

DILUTED EARNINGS PER SHARE (NOTE 1)                                               $1.64        $0.89
</TABLE>


                                       -2-

             The accompanying notes to the consolidated financial statements
                     are integral part of these statements

<PAGE>

                             DUFF & PHELPS CREDIT RATING CO. AND SUBSIDIARIES

                                     CONSOLIDATED BALANCE SHEETS
                                           (In Thousands)

<TABLE>
<CAPTION>
                                                                               JUNE 30,    DECEMBER 31,
                                                                                 1998         1997
                                                                              ----------   ------------
                                                                             (Unaudited)
<S>                                                                          <C>            <C>
ASSETS

CURRENT ASSETS:
     Cash                                                                        $  304        $  955
     Accounts receivable, net of allowance for doubtful
         accounts of $500 and $323, respectively                                 16,158         12,233
     Other current assets                                                         1,060            973
                                                                              ----------   ------------
     Total current assets                                                        17,522         14,161

OFFICE FURNITURE, EQUIPMENT AND LEASEHOLD IMPROVEMENTS,
     net of accumulated depreciation of $4,585 and $3,748,
     respectively (Note 1)                                                        5,285          4,914


OTHER ASSETS:
     Intangible assets, net (Note 1)                                              1,862          2,015
     Goodwill, net (Note 1)                                                      21,973         22,346
     Other long-term investments                                                  2,160          2,010
     Other long-term assets                                                          47             58
                                                                              ----------   ------------

     Total assets                                                             $  48,849      $  45,504
                                                                              ----------   ------------
                                                                              ----------   ------------

LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES:
     Accrued compensation and employment taxes                                 $  6,368       $  8,169
     Accounts payable                                                             3,005          3,275
     Accrued income tax  payable                                                    690            719
     Advance service fee billings to clients (Note 1)                             2,087          1,259
     Other current liabilities                                                        5             29
                                                                              ----------   ------------
     Total current liabilities                                                   12,155         13,451

LONG-TERM DEBT                                                                    1,500          7,000

OTHER LONG-TERM LIABILITIES                                                       2,768          1,776

STOCKHOLDERS' EQUITY:
     Preferred stock, no par value: 3,000 shares authorized, zero issued and
        outstanding                                                                   0              0
     Common stock, no par value: 15,000 shares authorized, 4,838 and 4,807
        shares issued and outstanding at June 30, 1998 and December 31, 1997,
        respectively                                                              1,187            363
     Retained earnings                                                           31,239         22,914
                                                                              ----------   ------------
     Total stockholders' equity                                                  32,426         23,277
                                                                              ----------   ------------

     Total liabilities and stockholders' equity                               $  48,849      $  45,504
                                                                              ----------   ------------
                                                                              ----------   ------------
</TABLE>


                                     -3-

            The accompanying notes to the consolidated financial statements
                    are integral part of these statements.

<PAGE>

                         DUFF & PHELPS CREDIT RATING CO. AND SUBSIDIARIES

                              CONSOLIDATED STATEMENTS OF CASH FLOWS
                                        (In Thousands)
                                         (Unaudited)

<TABLE>
<CAPTION>
                                                                              Six Months   Six Months
                                                                                Ended        Ended
                                                                               June 30,     June 30,
                                                                                 1998        1997
                                                                              ----------   ----------
<S>                                                                           <C>          <C>
CASH FLOWS FROM OPERATING ACTIVITIES:

     Net earnings                                                             $  8,613     $  5,018
     Increase in accounts receivable, net                                       (3,925)        (600)
     Decrease in accrued compensation and employment taxes                      (1,801)      (1,765)
     Increase in advance service fee billings                                      828          437
     Depreciation and amortization                                               1,378        1,075
     Increase/(decrease) in accrued income taxes payable                           397         (519)
     Increase in other assets and liabilities, net                                 591        1,130
                                                                              ----------   ----------
 Cash provided by operating activities                                           6,081        4,776
                                                                              ----------   ----------

CASH FLOWS FROM INVESTING ACTIVITIES:

     Decrease/(increase) in other long-term investments                           (150)           9
     Purchase of office furniture, equipment
          and leashold improvements, net of retirements                         (1,203)        (608)
                                                                              ----------   ----------
 Cash used in investing activities                                              (1,353)        (599)
                                                                              ----------   ----------

CASH FLOWS FROM FINANCING ACTIVITIES:

     Dividend paid to shareholders                                                (289)        (307)
     Decrease/(increase) in deferred financing costs                                11          (11)
     Issuances of common stock                                                     399          664
     Repurchases of common stock                                                     0       (7,969)
     Increase of long-term debt                                                  8,000       10,500
     Decrease of long-term debt                                                (13,500)      (6,500)
                                                                              ----------   ----------
Cash used in financing activities                                               (5,379)      (3,623)
                                                                              ----------   ----------

NET CHANGE IN CASH                                                                (651)         554

CASH, BEGINNING OF PERIOD                                                          955            0
                                                                              ----------   ----------

CASH, END OF PERIOD                                                           $    304       $  554
                                                                              ----------   ----------
                                                                              ----------   ----------
</TABLE>


                                     -4-

            The accompanying notes to the consolidated financial statements
                     are integral part of these statements.

<PAGE>

DUFF & PHELPS CREDIT RATING CO. AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)


1    SIGNIFICANT ACCOUNTING POLICIES:

GENERAL

     Duff & Phelps Credit Rating Co. (the "Company") is an internationally 
recognized credit rating agency which provides ratings and research on 
corporate, structured and sovereign financings, as well as insurance claims 
paying ability.  The Company has offices in Chicago, New York, London and 
Hong Kong and operates directly or through international partners in North 
America, South America, Europe, Asia and Africa.  The Company is also a 
designated rating agency in Japan.

      On October 31, 1994, the spin-off of the Company from its former parent 
company, Phoenix Duff & Phelps Corporation, formerly Duff & Phelps 
Corporation ("D&P"), was finalized.  The Company's shares, held by D&P, were 
distributed October 31, 1994, to D&P shareholders of record October 26, 1994, 
as a tax-free distribution for which a favorable tax ruling was obtained from 
the Internal Revenue Service.  D&P shareholders received one of the Company's 
shares for every three shares held of D&P common stock, and cash payments 
were made in lieu of fractional shares.  The distribution resulted in the 
Company operating as a free standing entity whose common stock is publicly 
traded on the New York Stock Exchange under the ticker symbol "DCR."

BASIS OF PRESENTATION

     The preparation of financial statements in conformity with generally 
accepted accounting principles requires management to make estimates and 
assumptions. These estimates affect the reported amounts of assets, 
liabilities and disclosure of contingent assets and liabilities at the date 
of the financial statements. In addition, they affect the reported amounts 
of revenues and expenses during the period.  Actual results could differ from 
those estimates.

     The accompanying consolidated financial statements have been prepared in 
accordance with generally accepted accounting principles and include those 
assets, liabilities, revenues and expenses directly attributable to the 
Company's operations in the periods presented. Certain reclassifications have 
been made to prior year's financial statements to conform with the current 
presentation.

PRINCIPLES OF CONSOLIDATION 

  The consolidated financial statements include the accounts of the Company 
and its wholly-owned subsidiaries, Duff & Phelps Credit Rating Co. of Europe 
and Duff & Phelps Credit Rating Co. of Asia. All significant intercompany 
balances and transactions have been eliminated.

EARNINGS PER SHARE

      Earnings per share are computed using the weighted average number of 
shares of common stock and common stock equivalents outstanding for each of 
the periods presented.  Common stock equivalents are based on outstanding 
stock options under a non-qualified stock option plan.



                                     -5-

<PAGE>

     Following is a reconciliation of the denominator used to calculate basic 
earnings per share to the denominator used to calculate diluted earnings per 
share for the periods indicated (in thousands):

     June 30,                                             1998          1997
     ------------------------------------------------------------------------
     Basic Weighted Average Shares Outstanding           4,827          5,100
     Stock Options Outstanding                           1,137          1,021
     Reduction in Shares for Treasury Stock Proceeds      (723)          (492)
     ------------------------------------------------------------------------
     Diluted Weighted Average Shares Outstanding         5,241          5,629

REVENUE RECOGNITION

     Rating revenues are typically recognized when services rendered for 
credit ratings are complete, generally when billed.  Revenues are dependent, 
in large part, on levels of debt issuance.  The Company's fee schedule 
depends on the type and amount of securities rated and the complexity of 
securities issued. Research revenues are billed in advance and amortized over 
the subscription period.

GOODWILL AND INTANGIBLE ASSETS

     Goodwill and intangible assets are shown net of accumulated 
amortization.  Goodwill is amortized over its estimated remaining life of 
approximately 30 years, and intangible assets are amortized over remaining 
lives of 2 through 11 years.

     The Company periodically evaluates whether significant events have 
occurred which may require a revision of the estimated useful life of 
goodwill and intangible assets or an impairment of the recoverability of 
remaining balances.  The Company uses an estimate of future discounted cash 
flows over the remaining useful life of goodwill and intangible assets to 
measure recoverability.  Management believes that the full amount of goodwill 
and intangible assets is recoverable.

DEPRECIATION AND AMORTIZATION

     Office furniture and equipment are stated at cost less accumulated 
depreciation and are depreciated on a straight-line basis over the estimated 
remaining lives of the assets, typically 3 to 10 years. Leasehold 
improvements are amortized over the remaining lives of the related leases 
which on average are 2 to 10 years.

2    RELATED PARTIES:

SERVICE FEES PAID TO D&P

     A name use fee agreement in effect between the Company and D&P requiring 
payment of $2 million per year is included in the Company's financial results 
for the periods presented. Effective September 30, 2000, the name use fee 
reduces to $10 thousand per year.

SERVICE FEES PAID TO THE COMPANY

     The Company provides D&P with fixed income research services for an annual 
fee of $0.9 million. For the periods presented, the fixed income research 
fees are included in revenue. The fixed income research agreement expires on 
September 30, 2000.

                                     -6-

<PAGE>

3    LONG-TERM DEBT AND SUPPLEMENTAL CASH FLOWS INFORMATION:

     Long-term debt obligations were $1.5 million and $7.0 million at 
weighted average interest rates of approximately 6.1 percent and 6.4 percent, 
for the periods ended June 30, 1998 and December 31, 1997, respectively.  
Cash interest and fees paid were $0.2 million for the first six months ended 
June 30, 1998 and 1997.

     Income taxes paid were $3.8 million during the second quarter of 1998 
and $6.1 million in the first half of 1998.

4    LITIGATION MATTERS:

     The Company and its subsidiaries are from time to time parties to 
various legal actions arising in the normal course of business.  Management 
believes that there is no proceeding threatened or pending against the 
Company or any of its subsidiaries which, if determined adversely, would have 
a material adverse effect on the financial condition or results of operations 
of the Company.


                                     -7-

<PAGE>

ITEM 2.   MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS
          OF OPERATIONS AND FINANCIAL CONDITION

RESULTS OF OPERATIONS
---------------------

                THREE MONTHS ENDED JUNE 30, 1998, COMPARED WITH
                -----------------------------------------------
                       THREE MONTHS ENDED JUNE 30, 1997
                       --------------------------------

     Revenues for the quarter ended June 30, 1998, were $21.5 million, an 
increase of 27 percent or $4.6 million, over the $16.9 million recorded in 
the second quarter of 1997.  Corporate rating revenues rose $1.8 million 
while structured finance rating revenues increased $2.8 million.

     Corporate rating revenues, which increased 22 percent over 1997, were 
benefited by a high level of financing activity by non-financial 
corporations. Structured finance rating revenues increased 36 percent over 
the prior year and were driven by an extraordinary level of real estate and 
asset backed transactions.

     International rating revenues, which are incorporated in the above 
comparisons and contributed to the overall gains, increased 36 percent over 
last year.

     Operating income for the three months ended June 30, 1998, was $7.4 
million, an increase of $3.0 million or 68 percent over the $4.4 million 
recorded in 1997.  This increase is a result of the revenue increases 
discussed above, offset by increases in operating expense of $1.6 million 
primarily due to increases in employment and other operating expenses as a 
result of the growth and performance discussed above.

     Interest expense decreased nominally in the second quarter of 1998 
primarily due to a lower average debt balance.  Income tax expense increased 
proportionately with income before taxes.

     Net earnings totaled $4.2 million for the three months ended June 30, 
1998, a $1.7 million or 68 percent increase over last year.  Diluted earnings 
per share increased 78 percent to $.80 versus $0.45 in 1997.  Basic earnings 
per share increased to $.87 in 1998 versus $0.49 in 1997.  Earnings per share 
gains are primarily the result of the performance described above in addition 
to the reduction in shares outstanding due to historical stock repurchases.

                 SIX MONTHS ENDED JUNE 30, 1998, COMPARED WITH
                 ---------------------------------------------
                        SIX MONTHS ENDED JUNE 30, 1997
                        ------------------------------

     Revenues for the six months ended June 30, 1998, were $43.3 million, an 
increase of 38 percent or $12.0 million, over the $31.3 million recorded in 
the corresponding period in 1997.  Rating revenues accounted for $12.1 
million of the increase and were offset by a decline in other revenues of 
$0.1 million.

     Rating revenues were favorably impacted by a 29 percent increase in 
corporate rating revenues and a 55 percent increase in structured finance 
rating revenues for the same reasons as described above.

     International rating revenues, which are incorporated in the above 
comparisons and contributed to the overall gains, increased 51 percent over 
last year.

     Operating income for the six months ended June 30, 1998, was $15.0 
million, an increase of $6.3 million or 72 percent over the $8.7 million 
recorded in 1997.  This increase reflects the revenue increases discussed 
above, offset by increases in operating expense of $5.6 million primarily 
reflecting increases in employment and other operating expenses as a result 
of the growth and performance discussed above.

     Interest expense decreased nominally in the first half of 1998 primarily 
due to a lower average debt balance.  Income tax expense increased 
proportionately with income before taxes.


                                     -8-

<PAGE>

     Net earnings totaled $8.6 million for the six months ended June 30, 
1998, a $3.6 million or 72 percent increase over last year.  Diluted earnings 
per share increased 84 percent to $1.64 versus $0.89 in 1997.  Basic earnings 
per share increased to $1.78 in 1998 versus $0.98 in 1997.  Earnings per 
share gains are primarily the result of the performance described above in 
addition to the reduction in shares outstanding due to historical stock 
repurchases.

LIQUIDITY AND CAPITAL RESOURCES
-------------------------------

     The Company has typically financed its operations, which do not require 
significant amounts of working capital or capital expenditures, through funds 
provided by operations.

     For the first six months ended June 30, 1998, capital expenditures, net 
of retirements totaled $1.2 million.  These capital expenditures were 
primarily for leasehold improvements, computer equipment and office 
furniture.  The Company expects capital expenditures to approximate $2.0 
million in 1998.

     Other cash investments for the second quarter of 1998 included payments 
made for ownership shares in certain joint ventures.

     Financing activities in the first six months of 1998 included the 
Company's dividend payments totaling approximately $0.3 million.

     The Company has in place a $20.0 million revolving bank credit agreement 
that expires December 31, 1999.  At June 30, 1998, $1.5 million was 
outstanding under the facility at a weighted average interest rate of 
approximately 6.1 percent, compared with $7.0 million outstanding at December 
31, 1997, at a weighted average interest rate of 6.4 percent.  Commitment 
fees are accrued on the unused facility at an annual rate of .25 percent and 
are paid quarterly.

     The bank credit agreement contains the following financial covenants 
among others: (i) a minimum net worth test; (ii) a maximum leverage test; and 
(iii) a limitation on indebtedness and capital expenditures.  The Company is 
currently in compliance with such covenants.  The bank credit agreement also 
imposes certain restrictions on sale of assets, mergers or consolidations, 
creation of liens, investments, leases and loans and certain other matters.

     The Company believes that funds provided by operations and amounts 
available under its credit agreement will provide adequate liquidity for the 
foreseeable future.

YEAR 2000
---------

The Company is taking steps to ensure that all systems will be fully 
compliant with Year 2000 requirements.  Certain software applications are 
already fully compliant.  The Company is soliciting written assurances from 
outside software vendors and third parties that their software will be 
century-compliant.  The Company believes that substantially all its systems 
will be in compliance prior to the commencement of the Year 2000, and that 
the Company will have no material business risk from such Year 2000 issues.  
The cost to ensure compliance is estimated to be immaterial to the results of 
operations at this time.


                                     -9-

<PAGE>

SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT
OF 1995

This report contains forward looking statements that are subject to risks and 
uncertainties, including but not limited to the following:  the Company's 
performance is highly dependent on corporate debt issuances and structured 
finance transactions, which may decrease for any number of reasons including 
changes in interest rates and adverse economic conditions; the Company's 
performance is affected by the demand for and the market acceptance of the 
Company's services; and the Company's performance may be impacted by changes 
in the performance of the financial markets and general economic conditions.  
Accordingly, actual results may differ materially from those set forth in the 
forward looking statements.  Attention is also directed to other risk factors 
set forth in documents filed by the Company with the Securities and Exchange 
Commission.

PART II.  OTHER INFORMATION

ITEM 4.   SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

     (a)  On May 13, 1998 an annual meeting of stockholders was held.

     (b)  Each of the five nominees for director were elected by a majority 
of shareholders' votes to serve until the next annual meeting of stockholders 
and until their successors are duly elected and qualified.  The directors 
elected were Paul J. McCarthy, Philip T. Maffei, Milton L. Meigs, Jonathan 
Ingham and Donald J. Herdrich.

ITEM 6.   EXHIBITS AND REPORTS ON FORM 8-K

          Exhibit No.    Description
             27          Financial  Data Schedule


                                     -10-

<PAGE>

                                   SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the 
registrant has duly caused this report to be signed on its behalf by the 
undersigned thereunto duly authorized.

                     Duff & Phelps Credit Rating Co.



August 12, 1998

                     /S/ Marie C. Becker
                     ----------------------------------------------------------
                     Marie C. Becker, Group Vice President, Accounting & Finance
                     (Principal Accounting Officer)