Moody's reports higher second-quarter profit on analytics unit strength
FILE PHOTO: The logo of credit-rating firm Moody's is seen during the Moody's Inside LatAm Colombia 2025 event, in Bogota, Colombia May 20, 2025. REUTERS/Luisa Gonzalez/File photo
(Reuters) -Ratings agency Moody's reported a rise in second quarter profit on Wednesday, driven by robust gains in its data and analytics unit and an increase in government borrowing.
Demand for market analytical tools rose in the reported quarter as investors sought health checks on Treasury debt issuance amid trade policy and interest rate uncertainties, boosting companies like Moody's.
Revenue from the analytics segment, which chiefly depends on a subscription model, climbed 11% to $888 million in the second quarter.
Moody’s results are closely watched by traders as a reliable indicator of market sentiment toward debt, given the agency’s broad influence across global fixed-income markets.
The company's Investors Service business, which issues credit ratings, generated $1 billion in revenue, matching last year’s figure.
Profit attributable to Moody’s totalled $578 million, or $3.21 per share, in the three months ended June 30, compared with $552 million, or $3.02 per share, a year earlier.
The company narrowed its annual adjusted earnings per share forecast to a range of $13.50 to $14, a slight upgrade from its previous outlook of $13.25 to $14 per share.
Moody’s shares, which have gained nearly 5% so far in 2025, were down marginally in pre-market trading.
(Reporting by Pritam Biswas in Bengaluru; Editing by Tasim Zahid)
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