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    Moody's Corp (MCO)

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    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 →
    Revenue by Segment - in Millions of USDFY 2013Q1 2014Q2 2014Q3 2014Q4 2014FY 2014Q1 2015Q2 2015Q3 2015Q4 2015FY 2015Q1 2016Q2 2016Q3 2016Q4 2016FY 2016Q1 2017Q2 2017Q3 2017Q4 2017FY 2017Q1 2018Q2 2018Q3 2018Q4 2018FY 2018Q1 2019Q2 2019Q3 2019Q4 2019FY 2019Q1 2020Q2 2020Q3 2020Q4 2020FY 2020Q1 2021Q2 2021Q3 2021Q4 2021FY 2021Q1 2022Q2 2022Q3 2022Q4 2022FY 2022Q1 2023Q2 2023Q3 2023Q4 2023FY 2023Q1 2024Q2 2024Q3 2024Q4 2024FY 2024Q1 2025
    Moody's Analytics8033,0697998028318633,295859
    - Decision Solutions3411,3833653663834021,516405
    -- Banking-378121---551141
    -- Insurance-12359---598163
    -- KYC-31287---367101
    - Research and Insights25884222226235243926236
    - Data and Information205789212210213218853218
    - Research, Data, and Analytics (RD&A)--------
    - Enterprise Risk Solutions (ERS)--------
    - Professional Services (PS)--------
    Moody's Investors Service7783,0469871,0159828093,7931,065
    - Corporate Finance3371,4045295255153811,950564
    -- Investment-grade-335147---488165
    -- High-yield-15067---28567
    -- Bank loans-292155---527160
    -- Other accounts-123---650172
    - Structured Finance102405114131135138518138
    -- Asset-backed securities-12133---13035
    -- RMBS-9224---9826
    -- CMBS-6017---9428
    -- Structured credit-12939---19348
    - Financial Institutions132545195195170167727191
    -- Managed investments-3212---4913
    - Public, Project and Infrastructure Finance105476141154154115564163
    -- Public finance / sovereign-20559---24072
    -- Project and infrastructure-27182---32491
    - MIS Other83081088349
    Total Revenue1,485,9161,7861,8171,8131,6727,0881,924
    Revenue by Geography - in Millions of USDFY 2013Q1 2014Q2 2014Q3 2014Q4 2014FY 2014Q1 2015Q2 2015Q3 2015Q4 2015FY 2015Q1 2016Q2 2016Q3 2016Q4 2016FY 2016Q1 2017Q2 2017Q3 2017Q4 2017FY 2017Q1 2018Q2 2018Q3 2018Q4 2018FY 2018 [N/A]Q1 2019Q2 2019Q3 2019Q4 2019FY 2019Q1 2020Q2 2020Q3 2020Q4 2020FY 2020Q1 2021Q2 2021Q3 2021Q4 2021FY 2021Q1 2022Q2 2022Q3 2022Q4 2022FY 2022Q1 2023Q2 2023Q3 2023Q4 2023FY 2023Q1 2024Q2 2024Q3 2024Q4 2024FY 2024Q1 2025
    United States7783,0989699749998943,8361,065
    Non-U.S.-2,8188178438147783,252859
    - EMEA4721,848542566546522,174569
    - Asia-Pacific135577155164157153629167
    - Americas95393120113111105449123
    Total Revenue1,485,9161,7861,8171,8131,6727,0881,924
    KPIs - Metric (Unit, Scale)FY 2013Q1 2014Q2 2014Q3 2014Q4 2014FY 2014Q1 2015Q2 2015Q3 2015Q4 2015FY 2015Q1 2016Q2 2016Q3 2016Q4 2016FY 2016Q1 2017Q2 2017Q3 2017Q4 2017FY 2017Q1 2018Q2 2018Q3 2018Q4 2018FY 2018Q1 2019Q2 2019Q3 2019Q4 2019FY 2019Q1 2020Q2 2020Q3 2020Q4 2020FY 2020Q1 2021Q2 2021Q3 2021Q4 2021FY 2021Q1 2022Q2 2022Q3 2022Q4 2022FY 2022Q1 2023Q2 2023Q3 2023Q4 2023FY 2023Q1 2024Q2 2024Q3 2024Q4 2024FY 2024Q1 2025
    MA ARR for Banking (USD millions)-418424428439---
    MA ARR for Insurance (USD millions)-533552569579---
    MA ARR for KYC (USD millions)-326344352360---
    MA ARR for Decision Solutions (USD millions)-1,2771,3201,3491,378---
    MA ARR for Research and Insights (USD millions)-879895902910---
    MA ARR for Data and Information (USD millions)-806844854859---
    Total MA ARR (USD millions)-2,9623,0593,1053,147---
    Global staffing for MA in the U.S. (headcount)-2,9952,9832,8812,971---
    Global staffing for MA outside the U.S. (headcount)-4,8584,9225,0325,182---
    Total global staffing for MA (headcount)-7,8537,9057,9138,153---
    Global staffing for MIS in the U.S. (headcount)-1,4901,5121,5131,559---
    Global staffing for MIS outside the U.S. (headcount)-3,8554,0834,1264,136---
    Total global staffing for MIS (headcount)--5,5955,6395,695---
    Global staffing for MSS in the U.S. (headcount)-744725727689---
    Global staffing for MSS outside the U.S. (headcount)-1,2091,2141,2261,239---
    Total global staffing for MSS (headcount)-1,9531,9391,9531,928---
    Global staffing for MCO in the U.S. (headcount)-5,2295,2205,1215,219---
    Global staffing for MCO outside the U.S. (headcount)-9,92210,21910,38410,557---
    Total global staffing for MCO (headcount)-15,15115,43915,50515,776---

    Leadership

    NamePositionExternal RolesShort Bio

    Robert Fauber

    ExecutiveBoard

    President and Chief Executive Officer

    Board of College Foundation for the University of Virginia

    CEO since January 2021, previously COO and President of Moody's Investors Service. Extensive experience in strategy, operations, and regulatory matters.

    		View Report →

    Caroline Sullivan

    Executive

    Chief Accounting Officer and Corporate Controller

    Board Member and Chair of Financial Executives International (FEI) Committee for FARR

    CAO since December 2018, served as Interim CFO (Sep 2023–Apr 2024). Extensive experience in global accounting and financial reporting.

    Michael West

    Executive

    President of Moody's Investors Service

    None

    President of MIS since November 2019. Extensive experience in ratings and research leadership roles.

    Noémie Heuland

    Executive

    Senior Vice President and Chief Financial Officer

    None

    CFO since April 2024, previously CFO at Dayforce and SAP Latin America. Strong background in scaling high-growth software companies.

    Stephen Tulenko

    Executive

    President of Moody's Analytics

    None

    President of Moody's Analytics since November 2019. Leads product strategy and growth initiatives, including in AI and subscription-based analytics.

    Bruce Van Saun

    Board

    Director

    Chairman and CEO of Citizens Financial Group, Member of The Clearing House Supervisory Board

    Director since 2016. Extensive experience in executive management and financial services leadership.

    Jorge A. Bermudez

    Board

    Director and Chairman of the Audit Committee

    Director at AB Mutual Funds, Chairman of Smart Grid Center Advisory Board at Texas A&M University

    Director since 2011. Former Chief Risk Officer at Citigroup. Extensive experience in risk management and global financial operations.

    Jose M. Minaya

    Board

    Director

    CEO of Nuveen, Board Member at Robert Toigo Foundation, National Forest Foundation, and ICI

    Director since 2022. Extensive experience in strategic investing and asset management.

    Kathryn M. Hill

    Board

    Director

    Director at NetApp, Inc. and Celanese Corporation

    Director since 2011. Over 30 years of experience in IT and business operations leadership.

    Leslie F. Seidman

    Board

    Director

    Director at General Electric, Advisor to Idaciti, Inc.

    Director since 2013. Former Chairman of FASB, with expertise in global accounting and financial reporting.

    Lloyd W. Howell, Jr.

    Board

    Director

    Director at GE Healthcare and KLDiscovery, Executive Director of NFL Players Association

    Director since 2021. Extensive expertise in business management, information systems, and cyber-related matters.

    Thérèse Esperdy

    Board

    Director

    Non-Executive Chairman of Imperial Brands PLC, Senior Independent Director at National Grid plc

    Director since 2019. Extensive experience in global investment banking and financial markets.

    Vincent A. Forlenza

    Board

    Chairman of the Board

    Chairman of Lehigh University Board of Trustees, Director at MaraBio Systems, MNHI, and Acuitive Technologies

    Chairman of Moody's Board since 2023. Former CEO and Chairman of Becton, Dickinson and Company. Extensive experience in corporate governance and strategic leadership.

    Zig Serafin

    Board

    Director

    CEO of Qualtrics International Inc.

    Director since 2021. Extensive experience in software and technology leadership, including at Microsoft.

    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

    Auditor

    NameStart DateEnd DateReason for Change
    KPMG LLP2008 PresentCurrent auditor

    Recent Mergers & Acquisitions

    Notable M&A activity and strategic investments in the past 3 years.

    CompanyYearDetails

    Global Credit Rating Company Limited (GCR)

    2024

    Completed in early July 2024, Moody's acquired the remaining interest in GCR, a leading domestic credit rating agency covering 25 African countries, as part of its strategy to reinforce its leadership in domestic rating markets worldwide with immaterial financial impact.

    360kompany AG (kompany)

    2022

    Completed on February 28, 2022, the acquisition of kompany, an entity specializing in business verification and Know Your Customer (KYC) technology solutions, enhanced Moody's capabilities in compliance, risk management, and decision solutions, with a non-material purchase price expected to boost inorganic revenue growth.

    Latest news

    Recent press releases and 8-K filings for MCO.

    Moody’s Ratings highlights trade resilience amid global tariff pressures
    •MCO
    • China’s goods trade rose by 2.5% to nearly 18 trillion yuan in Jan–May 2025, supported by diverse markets and structural upgrades.
    • Indian non-financial corporates are insulated from U.S. tariffs, with expected capital expenditure of $50 billion annually over two years and forecasted GDP growth of 6.3% in FY25.
    • Jamaica warned that new 10% U.S. tariffs disrupt Caribbean Basin Initiative preferences, prompting calls for export diversification and stronger supply chains via CARICOM.
    • China’s services sector improved, with Caixin PMI climbing to 51.1 in May, driven by new business growth and hiring despite export declines.
    Jun 6, 2025, 1:53 PM
    Fortune
    Moody’s: Rising US Debt Payments Threaten Fiscal Stability
    •MCO
    Debt Issuance
    • 2023 interest payments on federal debt reached $880 billion, surpassing spending on Medicaid, education, and veterans’ benefits.
    • Government interest costs now consume 13–15% of total federal spending, crowding out funds for defense, education, and infrastructure.
    • The traditional positive link between higher Treasury yields and a stronger dollar has collapsed, with rising yields now seen as a sign of fiscal distress rather than strength.
    • Political risks—such as aggressive fiscal expansion and interference with the Federal Reserve—have heightened market volatility and raised doubts about the dollar’s creditworthiness.
    May 31, 2025, 12:59 PM
    Bloomberg
    Moody's Highlights Growth, Global Expansion, and AI Initiatives
    •MCO
    M&A
    New Projects/Investments
    Revenue Acceleration/Inflection
    • Growth drivers and operating leverage: Moody's outlined recent revenue and EPS growth driven by digital evolution, AI-enabled solutions, and opportunities in private credit segments, emphasizing improved operating leverage over the past 2 to 5 years.
    • Acquisition integration and global presence: The company detailed successful integration of key acquisitions into a unified technology platform, bolstering cross-selling opportunities and strengthening its significant global footprint, with nearly half of revenues coming from outside the US.
    • Advancement in AI and analytics: Moody's is investing in AI and innovative platforms, such as its Research Assistant and enhanced lending solutions, to transform client interactions and evolve its revenue model towards consumption-based pricing.
    May 28, 2025, 3:01 PM
    Transcript
    Moody's Highlights Updated Guidance and Strategic Initiatives
    •MCO
    Guidance Update
    M&A
    New Projects/Investments
    • Moody's Analytics reported 9% ARR growth overall with its Decision Solutions segment growing at 12% and reaching over $1.4 billion in ARR, while updating its medium-term guidance to target low double-digit ARR growth and margin expansion to the mid- to high 30s.
    • The company adjusted its revenue guidance to reflect macro uncertainty, noting potential delays in customer investment decisions and a moderation in M&A growth expectations.
    • Moody's is expanding its focus on private credit, with private credit deal activity doubling in Q1 and the launch of a dedicated team to address market needs.
    • The firm is integrating GenAI across its offerings and internal processes—enhancing customer support, sales, engineering, and other back-office functions—to drive efficiency gains.
    May 7, 2025, 10:31 AM
    Transcript
    Moody's Corp Reports Q1 2025 Earnings and Results
    •MCO
    Earnings
    Revenue Acceleration/Inflection
    Guidance Update
    • Diluted EPS increased to $3.46 (up 10%) and Adjusted diluted EPS improved by 14% to $3.83 compared to the prior-year quarter
    • Revenue reached $1.9 billion (up 8% YoY) across Moody's Analytics and Moody's Investors Service, with MIS revenue hitting a record $1.1B
    • Company updated its full-year guidance, now expecting Adjusted diluted EPS between $13.25 and $14.00, reflecting a mid-point annual growth of 9%
    • Adjusted operating margins improved, with MA at 30.0% and MIS at 66.0%, supporting strong profitability
    • CEO and CFO emphasized strong performance amid market volatility by leveraging strategic growth and cost management initiatives
    Apr 22, 2025, 1:00 PM
    Presentation8-K