As cyber losses mount, landmark partnership
creates a unique ability for customers to identify and quantify
cyber risk and financial exposure
Moody’s Corporation (NYSE:MCO) and BitSight today announced a
significant investment by Moody’s, further enhancing BitSight’s
offerings and capabilities, to create a comprehensive, integrated,
industry-leading cybersecurity risk platform. This transaction
reflects the increasing strategic, financial, and operational
impact of cyber risk to organizations and markets.
Over the past 18 months, the exponential rise of cyberattacks
and ransomware has cost organizations hundreds of billions of
dollars, threatened the stability and reputation of businesses
across the globe, and created an imperative for business leaders
and boards to assess and quantify their cyber risk. A Moody’s
Investors Service review of cyber vulnerability and impact
identified 13 sectors with high or medium-high risk with total
rated debt exceeding $20 trillion.
Through the transaction announced today, Moody’s will invest
$250 million in BitSight, a pioneer in cybersecurity ratings, and
BitSight will acquire VisibleRisk, a cyber risk ratings joint
venture created by Moody’s and Team8, a global venture group.
BitSight helps global market participants understand cyber risk
through ratings, analytics, and performance management tools,
delivering unique insights for over 2,300 global customers,
including many Fortune 500 companies, government agencies,
insurers, and asset managers. Moody’s will leverage BitSight’s
extensive cyber risk data and research across its growing suite of
integrated risk assessment product offerings. BitSight’s
acquisition of VisibleRisk adds a unique in-depth cyber risk
assessment capability and advances its ability to analyze and
calculate an organization’s financial exposure to cyber risk. The
transaction values BitSight at $2.4 billion, reflecting the
company’s leadership in a rapidly growing data and analytics
market.
“As organizations invest in cyber defense and resilience,
another critical need has emerged: the ability to accurately
measure and quantify cyber risk and exposure,” said Rob Fauber,
President and Chief Executive Officer of Moody’s. “Creating
transparency and enabling trust is at the core of Moody’s mission –
to help organizations assess complex, interconnected risks and make
more informed decisions. BitSight is the leader in the
cybersecurity ratings space, and together we will help market
participants across disciplines better understand, measure, and
manage their cyber risks and translate that to the risk of
financial loss.”
“Cybersecurity is one of the biggest threats to global commerce
in the 21st century,” said Steve Harvey, President and Chief
Executive Officer of BitSight. “Our partnership with Moody’s and
acquisition of VisibleRisk expands our reach to help customers
manage cyber risk in an increasingly digital world.”
BitSight will create a Risk Solutions Division focused on
delivering a suite of critical solutions and analytics serving
stakeholders including chief risk officers, c-suite executives, and
boards of directors.
Following transaction close, Moody’s will become the largest
shareholder of BitSight, with a minority stake in the company. The
investment will be funded with cash on hand and will not have a
material impact on Moody’s 2021 financial results.
For more information on Moody’s and cyber, visit
https://www.moodys.com/cyber.
ABOUT MOODY’S
CORPORATION
Moody’s (NYSE: MCO) is a global integrated risk assessment firm
that empowers organizations to make better decisions. Its data,
analytical solutions and insights help decision-makers identify
opportunities and manage the risks of doing business with others.
We believe that greater transparency, more informed decisions, and
fair access to information open the door to shared progress. With
over 11,500 employees in more than 40 countries, Moody’s combines
international presence with local expertise and over a century of
experience in financial markets. Learn more at
moodys.com/about.
ABOUT BITSIGHT
BitSight is transforming the way that the global marketplace
addresses cyber risk with cybersecurity ratings and analytics. The
BitSight Security Ratings Platform applies sophisticated
algorithms, producing daily security ratings that range from 250 to
900, to help organizations manage their own security performance;
mitigate third party risk; underwrite cyber insurance policies;
conduct financial diligence; and improve national security. With
2,300 global customers and the largest ecosystem of users and
information, BitSight is the Standard in Security Ratings. Learn
more at bitsight.com.
“SAFE HARBOR” STATEMENT UNDER THE
PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995
Certain statements contained in this release are forward-looking
statements and are based on future expectations, plans and
prospects for the business and operations of Moody’s Corporation
(the “Company”) that involve a number of risks and uncertainties.
Such statements may include, among other words, “believe”,
“expect”, “anticipate”, “intend”, “plan”, “will”, “predict”,
“potential”, “continue”, “strategy”, “aspire”, “target”,
“forecast”, “project”, “estimate”, “should”, “could”, “may” and
similar expressions or words and variations thereof that convey the
prospective nature of events or outcomes generally indicative of
forward-looking statements. Stockholders and investors are
cautioned not to place undue reliance on these forward-looking
statements. The forward-looking statements and other information in
this release are made as of the date hereof and the Company
undertakes no obligation (nor does it intend) to publicly
supplement, update or revise such statements on a going-forward
basis, whether as a result of subsequent developments, changed
expectations or otherwise, except as required by applicable law or
regulation. In connection with the “safe harbor” provisions of the
Private Securities Litigation Reform Act of 1995, the Company is
identifying examples of factors, risks and uncertainties that could
cause actual results to differ, perhaps materially, from those
indicated by these forward-looking statements. Those factors, risks
and uncertainties include, but are not limited to, the impact of
COVID-19 on volatility in the U.S. and world financial markets, on
general economic conditions and GDP in the U.S. and worldwide, and
on the Company’s own operations and personnel. Many other factors
could cause actual results to differ from Moody’s outlook,
including credit market disruptions or economic slowdowns, which
could affect the volume of debt and other securities issued in
domestic and/or global capital markets; other matters that could
affect the volume of debt and other securities issued in domestic
and/or global capital markets, including regulation, credit quality
concerns, changes in interest rates and other volatility in the
financial markets such as that due to Brexit and uncertainty as
companies transition away from LIBOR; the level of merger and
acquisition activity in the U.S. and abroad; the uncertain
effectiveness and possible collateral consequences of U.S. and
foreign government actions affecting credit markets, international
trade and economic policy, including those related to tariffs, tax
agreements and trade barriers; concerns in the marketplace
affecting our credibility or otherwise affecting market perceptions
of the integrity or utility of independent credit agency ratings;
the introduction of competing products or technologies by other
companies; pricing pressure from competitors and/or customers; the
level of success of new product development and global expansion;
the impact of regulation as an NRSRO, the potential for new U.S.,
state and local legislation and regulations; the potential for
increased competition and regulation in the EU and other foreign
jurisdictions; exposure to litigation related to Moody’s Investors
Service’s rating opinions, as well as any other litigation,
government and regulatory proceedings, investigations and inquiries
to which the Company may be subject from time to time; U.S.
legislation modifying the pleading standards and EU regulations
modifying the liability standards applicable to credit rating
agencies in a manner adverse to credit rating agencies; provisions
of EU regulations imposing additional procedural and substantive
requirements on the pricing of services and the expansion of
supervisory remit to include non-EU ratings used for regulatory
purposes; the possible loss of key employees; failures or
malfunctions of our operations and infrastructure; any
vulnerabilities to cyber threats or other cybersecurity concerns;
the outcome of any review by controlling tax authorities of the
Company’s global tax planning initiatives; exposure to potential
criminal sanctions or civil remedies if the Company fails to comply
with foreign and U.S. laws and regulations that are applicable in
the jurisdictions in which the Company operates, including data
protection and privacy laws, sanctions laws, anti-corruption laws,
and local laws prohibiting corrupt payments to government
officials; the impact of mergers, acquisitions or other business
combinations and the ability of the Company to successfully
integrate such acquired businesses; currency and foreign exchange
volatility; the level of future cash flows; the levels of capital
investments; and a decline in the demand for credit risk management
tools by financial institutions. These factors, risks and
uncertainties as well as other risks and uncertainties that could
cause Moody’s actual results to differ materially from those
contemplated, expressed, projected, anticipated or implied in the
forward-looking statements are currently, or in the future could
be, amplified by the COVID-19 outbreak, and are described in
greater detail under “Risk Factors” in Part I, Item 1A of the
Company’s annual report on Form 10-K for the year ended December
31, 2020 and in other filings made by the Company from time to time
with the SEC or in materials incorporated herein or therein.
Stockholders and investors are cautioned that the occurrence of any
of these factors, risks and uncertainties may cause the Company’s
actual results to differ materially from those contemplated,
expressed, projected, anticipated or implied in the forward-looking
statements, which could have a material and adverse effect on the
Company’s business, results of operations and financial condition.
New factors may emerge from time to time, and it is not possible
for the Company to predict new factors, nor can the Company assess
the potential effect of any new factors on it.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210913005187/en/
SHIVANI KAK Investor Relations +1 212-553-0298
Shivani.kak@moodys.com
OR
JOE MIELENHAUSEN Communications +1 212-553-1461
joe.mielenhausen@moodys.com
Moodys (NYSE:MCO)
Historical Stock Chart
From Mar 2024 to Apr 2024
Moodys (NYSE:MCO)
Historical Stock Chart
From Apr 2023 to Apr 2024