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Moody’s profits beat Wall St expectations
MOODY’S posted better-than-expected second quarter profit as demand for debt ratings picked up.
Earnings rose to $121m (£77m) from $109.3m yesterday, while revenue of $477.8m, down from the first quarter but up six per cent from a year earlier.
The rating agency was cautious about the outlook for its business, which faces a tough second half as debt issuance slows and costs associated with new financial regulation increase. But Moody’s reported a bigger jump in revenue than Standard & Poor’s. Regulatory changes now threaten to cut into their businesses. Under new financial reform, ratings agencies can be sued if they “recklessly” fail to review information in a rating.