Moody's quarterly profit jumps on bond issuance activity strength

July 22 (Reuters) - Moody's ‌reported a ​jump ​in second-quarter profit on Wednesday, as strong bond issuance activity drove growth in its ‌ratings business.

Global bond issuance was strong in ⁠the reported quarter as credit spreads, a gauge of corporate ‌sector health, were at ‌historically low levels, creating a favorable environment for tapping debt markets.

Here are some more details:

• Revenue ​from Moody's investors service business, which issues credit ratings, jumped 25% to $1.26 billion in the quarter ⁠from a year earlier.

• Rated issuance volume surged 33%, driven by ​broad-based strength across business lines.

• "As capital markets evolve, funding needs grow, risks become more ​interconnected, and AI transforms workflows, ‌customers are turning to us to make consequential decisions with greater confidence," CEO ⁠Rob Fauber said.

• Revenue from the analytics segment, which chiefly depends on fixed subscriptions, rose 4% in the ⁠second quarter.

• Profit attributable to Moody's was $878 million, or $5.03 per ​share, in the three months ended June 30, compared with $578 million, or $3.21 per share, a year earlier.

• Moody's raised the ‌lower end of its annual profit forecast to $16.50 from $16.40. Revenue growth is still ‌expected to be in the high-single-digit percent range ⁠in 2026.

• The stock ‌has fallen 3.9% ​this year through last close.

(Reporting by Arasu Kannagi Basil in Bengaluru; Editing by Shreya ‌Biswas)

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