(Bloomberg) -- Moody’s Corp. reported adjusted second-quarter earnings that beat expectations and also raised its forecast, as a corporate bond issuance spree bolstered its debt-rating business.
Adjusted earnings per share rose 43% to $3.28 in the period, Moody’s said in a statement Tuesday. Analysts had expected $3.05, according to estimates compiled by Bloomberg. The company also forecasts adjusted earnings per share for the year of $11 to $11.40, up from previous views of $10.40 to $11, compared with the median analyst estimate of $11.09.
Corporate Finance revenue jumped 44% amid heightened issuance activity across primary markets, said Moody’s. Revenue from rated investment-grade issuance rose 28% while its leveraged loans business rose 116%, thanks to elevated refinancing and repricing activity.
“This was another impressive quarter for Moody’s, led by the performance of our best-in-class ratings franchise,” president and chief executive officer Rob Fauber, said in the statement.
Blue-chip firms have been on a borrowing spree this year, lured by a favorable funding environment and strong investor demand. US investment-grade bond sales hit $942 billion on Monday, up 26% compared with the same period last year, according to data compiled by Bloomberg. Companies are also rushing to primary markets to get ahead of upcoming US elections that could potentially bring market volatility.
Shares were up by less than a percentage point at 11:08 am in New York. Management is scheduled to host a call discussing the results with analysts at 1 pm New York time.
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