Sign in

    Moody's Corp (MCO)

    You might also like

    Business Description

    Moody's Corporation operates as a global integrated risk assessment firm, providing essential services through its two main segments: Moody's Analytics (MA) and Moody's Investors Service (MIS). The company offers data, intelligence, and analytical tools to assist business and financial leaders in making informed decisions, as well as publishing credit ratings and assessment services for various debt obligations and entities worldwide . Moody's Analytics is comprised of three lines of business: Research & Insights, Data & Information, and Decision Solutions, while Moody's Investors Service primarily generates revenue from credit rating assignments and monitoring .

    1. Moody's Analytics (MA) - Provides data, intelligence, and analytical tools to help business and financial leaders make confident decisions .

      • Research & Insights - Offers research services and credit scoring tools, contributing significantly to MA's revenue .
      • Data & Information - Delivers data feed activities and master data management applications, supporting use cases like supply chain analysis and KYC, including products like Orbis .
      • Decision Solutions - Focuses on cloud-based SaaS businesses serving banking, insurance, and KYC workflows .

    2. Moody's Investors Service (MIS) - Publishes credit ratings and provides assessment services on a wide range of debt obligations and entities worldwide, with revenue primarily from fees for credit rating assignments and monitoring .

    Key Metrics

    View all financials →

    Executive Team

    NamePositionStart DateShort Bio
    Robert FauberPresident and Chief Executive OfficerJanuary 2021Robert Fauber has served as the President and Chief Executive Officer of Moody's Corporation since January 2021. He joined the Board of Directors in October 2020 and currently serves on the Executive Committee of the Board. Prior to his role as CEO, Mr. Fauber held several senior leadership positions within Moody's .
    Caroline SullivanInterim Chief Financial Officer, Chief Accounting Officer, and ControllerDecember 2018Caroline Sullivan is the Interim Chief Financial Officer, Chief Accounting Officer, and Corporate Controller at Moody's Corporation. She has served as the company's Chief Accounting Officer and Corporate Controller since December 2018. Prior to joining Moody's, she held several roles at Bank of America from 2011 to 2018 .
    Richard SteeleSenior Vice President and General CounselSeptember 2023Richard Steele is the Senior Vice President and General Counsel at Moody's Corporation. He has served in this role since September 2023. Mr. Steele joined Moody's KMV Company in 2006 as its Chief Legal Officer and was named General Counsel of Moody's Analytics in January 2008 .
    Stephen TulenkoPresident, Moody's AnalyticsNovember 2019Stephen Tulenko has served as the President of Moody's Analytics since November 2019. Before this role, he was the Executive Director of ERS from 2013 to October 2019 and the Executive Director of Global Sales, Customer Service, and Marketing from 2008 to 2013. Mr. Tulenko joined Moody's in 1990 .
    Michael WestPresident, Moody's Investors ServiceNovember 2019Michael West has served as the President of Moody's Investors Service, Inc. since November 2019. Prior to this role, he was the Managing Director—Head of MIS Ratings and Research from June 2016 to October 2019. Michael West joined Moody's in 1998 after working at Bank of America and HSBC in various credit roles .

    Questions to Ask Management

    1. Given the tough comps from this year's near-record issuance levels, how confident are you that the anticipated tailwinds, such as lower default rates and refunding walls approaching $5 trillion over the next 4 years , will offset potential headwinds like geopolitical risks and economic uncertainties in 2025?

    2. With private credit assets under management expected to reach up to $3 trillion by 2028 , how is Moody's positioning itself to capture growth opportunities in this market, and what specific steps are you taking to meet the demand for independent third-party ratings and assessments?

    3. Regarding the RMS acquisition, while you report improvements in growth and margins , can you elaborate on how RMS has contributed to cross-selling opportunities within Moody's, and what challenges remain in fully realizing its potential across your product offerings?

    4. Your adjusted diluted EPS guidance implies Q4 EPS growth will be relatively flat to slightly down compared to the prior period and down approximately 30% sequentially from Q3 ; can you explain the primary factors behind this expected decline, especially in light of strong year-to-date performance?

    5. Given that ARR growth in MA slowed to 9% due to factors like increased attrition and lower sales to banks and asset managers , what specific strategies are you implementing to accelerate ARR growth back to double digits and improve new business sales execution?

    Share Repurchase Program

    Program DetailsProgram 1Program 2
    Approval DateFebruary 5, 2024 October 15, 2024
    End Date/DurationN/AN/A
    Total Additional Amount$1 billion $1.5 billion
    Remaining Authorization$547 million $1.5 billion
    DetailsPart of capital allocation strategy to maintain financial flexibility and manage leverage around a BBB+ rating. Recently authorized, full amount likely available.

    Debt Maturity Schedule

    YearAmount Due (in millions)Debt TypeInterest Rate% of Total Debt
    2025$700 3.75% 2020 Senior Notes 3.75% 9.0% = (700 / 7,795) * 100
    2027$558 1.75% 2015 Senior Notes 1.75% 7.2% = (558 / 7,795) * 100
    2028$500 3.25% 2017 Senior Notes 3.25% 6.4% = (500 / 7,795) * 100
    2029N/A4.25% 2018 Senior Notes 4.25% N/A
    2030N/A0.950% 2019 Senior Notes 0.950% N/A
    2031N/A2.00% 2021 Senior Notes 2.00% N/A
    2032N/A4.25% 2022 Senior Notes 4.25% N/A
    2034N/A5.00% 2024 Senior Notes 5.00% N/A
    2041N/A2.75% 2021 Senior Notes 2.75% N/A
    2044N/A5.25% 2014 Senior Notes 5.25% N/A
    2048N/A4.875% 2018 Senior Notes 4.875% N/A
    2050N/A3.25% 2020 Senior Notes 3.25% N/A
    2052N/A3.75% 2022 Senior Notes 3.75% N/A
    2060N/A2.55% 2020 Senior Notes 2.55% N/A
    2061N/A3.10% 2021 Senior Notes 3.10% N/A
    Thereafter$6,037 N/AN/A77.4% = (6,037 / 7,795) * 100

    Competitors

    Competitors mentioned in the company's latest 10K filing.

    • Other CRAs (Credit Rating Agencies)
    • Investment banks and brokerage firms that offer credit opinions in research
    • Non-NRSROs that evaluate debt risk for issuers or investors
    • Local rating agencies supported by governments in some countries
    • Consulting firms and technology and information providers

    Auditor

    NameStart DateEnd DateReason for Change
    KPMG LLP2008 PresentCurrent auditor