Raymond McDaniel, Moody’s Chairman and CEO stated recently:  “The severity and protracted nature of current credit market dislocations confirms that the challenges of 2007 will persist well into 2008.”  Full-year revenues for 2008 are expected to decline in the lower double-digits percent range due to the declines in residential and commercial mortgage issuance.  In the forth quarter 2007 Moody’s rating business revenues fell by more than 20% (year –on-year).  Revenues from structured finance securities fell by 53% due to a significant decline in new issuance across a variety of asset classes.  Moody’s also expects significant scrutiny from regulators in 2008.   Overall Moody’s revenues for the full year grew by 11% to US$ 2,037.1 million. Operating income grew by 7% to US$ 1,181.0 million.   Source: Financial Times and Company Press Release

BIIA Newsletter February 2008 Issue