MOODY’S reported a better-than-expected third-quarter profit yesterday and raised its full-year outlook, as a pickup in capital markets activity prompted more bond issuers to seek its ratings.
Moody’s earnings were powered by a 43 per cent jump in revenue from rating corporate debt.
Moody’s said third-quarter profit rose to $136m (£85.3m), or 58 cents a share, from $100.6m, or 42 cents a share, a year earlier. That beat analysts’ average expectation of a profit of 45 cents a share. The company said revenue climbed 14 per cent to $513.3m. Moody’s Investors Service, the company’s core rating agency business, rated more high-yield bonds, more financial institutions’ debt and more debt from infrastructure and project finance in the third quarter. Moody’s has struggled in the last couple of years as the credit crunch has lowered debt issuance volumes. It was also broadly criticised for not spotting problems that contributed to the global crisis.
City A.M. Reporter