What a difference three months make.  After a spectacular Q2 results the market for ratings went sour for Moody’s.  Moody's Results Q3 2013 A

For Moody’s Corporation overall, global revenue of $705.5 million for the third quarter of 2013 was up 2% from the third quarter of 2012. U.S. revenue of $391.0 million and non-U.S. revenue of $314.5 million for the third quarter of 2013 increased 3% and 1%, respectively, from the third quarter of 2012. Revenue generated outside the U.S. represented 45% of Moody’s total revenue for the quarter, consistent with the year-ago period.

Global revenue for Moody’s Investors Service (“MIS”) for the third quarter of 2013 was $478.1 million, up 1% from the prior-year period. U.S. revenue of $290.1 million for the third quarter of 2013 was flat to the third quarter of 2012. Revenue generated outside the U.S. of$188.0 million increased 2% from the year-ago period. The impact of foreign currency translation on MIS revenue was negligible.

  • Within MIS, global corporate finance revenue of $233.0 million in the third quarter of 2013 increased 6% from the prior-year period, reflecting increased bank loan issuance in the U.S. and EMEA, as well as increased monitoring revenue in all regions. Corporate finance revenue was flat in the U.S. compared to the third quarter of 2012, while non-U.S. revenue increased 18 percent.
  • Global structured finance revenue totaled $83.5 million for the third quarter of 2013, reflecting a 10% decrease from a year earlier. U.S. structured finance revenue grew 3% from the year-ago period, primarily due to commercial real estate issuance. Non-U.S. structured finance revenue declined 27%, reflecting weaker issuance volumes across the regions outside the U.S.
  • Global financial institutions revenue of $78.9 million in the third quarter of 2013 decreased 5% compared to the prior-year period. U.S. and non-U.S. financial institutions revenue decreased 3% and 6%, respectively, primarily from a decline in issuance activity by smaller banking institutions.
  • Global public, project and infrastructure finance revenue was $82.7 million for the third quarter of 2013, an increase of 7% from the third quarter of 2012. U.S. and non-U.S. revenue were up 1% and 20%, respectively, from the prior-year period, primarily due to gains in infrastructure finance globally, largely offset by lower public finance issuance in the U.S.

Global revenue for Moody’s Analytics (“MA”) for the third quarter of 2013 was $227.4 million, up 6% from the third quarter of 2012. In the U.S., MA revenue of $100.9 million for the third quarter of 2013 increased 14% from the prior-year period. Outside the U.S., revenue of $126.5 million was flat compared to the same quarter of 2012. The impact of foreign currency translation on MA revenue was negligible.

  • Revenue from research, data and analytics of $133.7 million increased by 8% from the prior-year period, reflecting strong customer retention and solid demand for MA’s research offerings.
  • Enterprise risk solutions revenue of $64.4 million was up 1% against a strong prior-year period. Revenue from professional services of $29.3 million was up 10% from the prior-year period, reflecting strong growth in revenue from Copal Partners, partially offset by softness in the training and certification business.

Moody’s Corporation revenue for the first nine months of 2013 totaled $2,193.3 million, an increase of 11% from $1,976.1 million for the same period of 2012. The impact of foreign currency translation on revenue for the first nine months was negligible. Revenue at MIS totaled $1,536.6 million for the first nine months of 2013, an increase of 12% from the same period in 2012. MA revenue rose 8% from the first nine months of 2012 to $656.7 million.

Source:  Moody’s Press Release