Moody's Corp. said its first-quarter earnings increased thanks
to double-digit revenue growth in both its debt-rating and
analytics segments.
The results beat analysts' expectations.
The Moody's Investors Service debt-rating unit, which is the
company's biggest revenue driver, reported $602 million in revenue
during the quarter, an increase of 14%.
Investors rely on the bond grades issued by Moody's, Standard
& Poor's Ratings Services and Fitch Ratings. Collectively, they
issue about 95% of ratings globally--a total virtually unchanged
from before the financial crisis.
The analytics division posted revenue of $263 million, an
increase of 11%. A growing part of Moody's revenue comes from its
analytics division, which provides financial data and other types
of market intelligence to investors, banks and other players.
In all, the company reported a profit of $230 million, or $1.11
a share, up from $218 million, or $1 a share, a year earlier.
Revenue rose 13% to $866 million, or 18% excluding negative
currency effects.
Analysts surveyed by Thomson Reuters projected earnings of $1.03
a share and revenue of $828 million.
The company reaffirmed its guidance for the year.
Shares have increased 12% this year through Thursday's close and
were inactive premarket.
Write to Angela Chen at angela.chen@dowjones.com
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