July 22 - Moody’s reported a jump in second-quarter profit on Wednesday, as strong bond issuance activity drove growth in its ratings business.
Global bond issuance was strong in the reported quarter as credit spreads, a gauge of corporate sector health, were at historically low levels, creating a favorable environment for tapping debt markets.
Here are some more details:
- Revenue from Moody’s investors service business, which issues credit ratings, jumped 25 per cent to US$1.26 billion in the quarter from a year earlier.
- Rated issuance volume surged 33 per cent, driven by broad-based strength across business lines.
- “As capital markets evolve, funding needs grow, risks become more interconnected, and AI transforms workflows, customers are turning to us to make consequential decisions with greater confidence,” CEO Rob Fauber said.
- Revenue from the analytics segment, which chiefly depends on fixed subscriptions, rose 4 per cent in the second quarter.
- Profit attributable to Moody’s was US$878 million, or US$5.03 per share, in the three months ended June 30, compared with US$578 million, or US$3.21 per share, a year earlier.
- Moody’s raised the lower end of its annual profit forecast to US$16.50 from US$16.40. Revenue growth is still expected to be in the high-single-digit percent range in 2026.
- The stock has fallen 3.9 per cent this year through last close.
(Reporting by Arasu Kannagi Basil in Bengaluru; Editing by Shreya Biswas)
