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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 .
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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 .
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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 .
| Name | Position | External Roles | Short 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. |
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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?
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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?
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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?
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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?
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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?
Notable M&A activity and strategic investments in the past 3 years.
| Company | Year | Details |
|---|---|---|
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. |
Recent press releases and 8-K filings for MCO.
- 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.
- 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.
- 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