Moody's Corp. said a pickup in debt issuance and a bigger impact from cost-cutting initiatives have improved its business recently, leading the company to lift its annual guidance.

The ratings firm said it now expects unadjusted earnings of $4.70 to $4.80 share, up from its previous outlook for $4.55 a share. The updated guidance includes a noncash foreign exchange gain of about 18 cents, as well as a 4-cent restructuring charge associated with cost management. Moody's said it expects to book the restructuring charge in its third quarter and the foreign-exchange gain in its fourth quarter.

"Increased issuance activity combined with a greater impact from our cost savings initiatives has resulted in a modestly improved outlook," said Chief Executive Raymond McDaniel, ahead of Wednesday's investor conference in New York.

In July, the company—which relies on activity in global credit markets as corporations and lenders pay firms like Moody's to rate the debt they issue—said revenue edged up in the second quarter as bond issuance recovered, though said heightened market uncertainty outside of the U.S. would pressure full-year results.

While the guidance issued today is a boost from July's outlook, it is still below the $4.75 to $4.85 Moody's initially projected in February.

Moody's also for the first time this year offered an adjusted EPS outlook of $4.55 to $4.65 a share, which excludes the forex gain and restructuring charge.

Shares in the company, inactive premarket, have risen 9.6% so far this year.

Write to Anne Steele at Anne.Steele@wsj.com

(END) Dow Jones Newswires

September 28, 2016 09:55 ET (13:55 GMT)

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