“Moody’s plays a vital role in helping our customers navigate increasingly dynamic times.”

“In this context, Moody’s Analytics again delivered impressive growth this quarter as our suite of data, digital insights and decision solutions helped customers identify and manage their risks.   However, Moody’s Investors Service’s revenue was meaningfully impacted as global debt issuance declined sharply amid ongoing market volatility, persistent inflation and geopolitical tensions.

We continue to prioritize financial discipline, as we balance our short-term performance with executing on our long-term integrated risk assessment strategy.

Despite the strong performance of Moody’s Analytics, we recognize the need to take decisive actions to control and streamline our expense base.  We are accelerating the Geolocation Restructuring Program announced last quarter and expanding it to include additional savings.

In light of the ongoing macro uncertainties, we remain cautious about credit market activity for the remainder of 2022 and have reflected this in our updated full year 2022 adjusted diluted EPS guidance range.”     Rob Fauber  President and Chief Executive Officer


Moody’s Segment Results:


Moody’s Investor Service:  Ratings



Moody’s Analytics 



 

Editorial Comment:  The downturn in ratings services brings Moody’s Analytics (MA) in a prominent position within Moody’s having achieved almost 50% of Moody’s total revenue (year-to-date).   Maintaining MA’s double digit growth will help Moody’s to be less subject to the fluctuations in revenue growth of its rating business.    In picking up titbits from within the credit information industry, it is being said that MA and the credit bureaus are largely responsible for the lack of high growth of traditional credit information businesses. 


Source:  Moody’s Q3 2022 Earnings Release