Moody’s ups dividend as bond market grows

 
City A.M. Reporter
CREDIT rating agency Moody’s posted a higher-than-expected 31 per cent jump in quarterly profit as companies issued more bonds.

Total revenue increased 18 per cent to $756m (£651m) in the second quarter, while total expenses rose about 12 per cent to $405.2m.

Net income attributable to Moody’s rose to $225.5m, or $1.00 per share, from $172.5m, or 76 cents per share, a year earlier.

Moody’s raised its annual dividend by 25 per cent to $1.00 per share and said it will buy back $1bn shares in 2013.

Revenue at Moody’s analytics division, which sells financial research, data and software for assessing risk, increased 10 per cent to $218.7m, while revenue at its corporate finance division rose 37 per cent to $262.9m.

Companies that issue bonds pay Moody’s to rate their debt to help investors determine the likelihood of default.

The company reiterated its full-year adjusted earnings forecast of $3.49 to $3.59 per share. Analysts were expecting $3.57 per share.

“Moody’s results for the second quarter reflected continued strong operating performance across the company,” said Raymond McDaniel, president and chief executive of Moody’s.