Moody’s Corporation
July 6, 2011 – 6:34 pm
Business Profile
Moody’s Corporation (Moody’s) is the world’s widely utilized and most respected source for credit ratings including securities for fixed income, risk analysis and research. Moody’s has expertise in making of a stable, integrated and transparent financial market to its customers. It also assists in protecting the credit integrity. Apart from these core services, Moody’s offers several other services like data research and analytic tools for research deal, credit risk, credit opinions and commentary.
Moody’s has about 2,400 institutions all over the world and has approximately 9,300 customers. Moody’s provides its services to government security issuers, corporate, creditors, investment banks and other financial institutes. Moody’s also publishes credit research oriented by investor, like research on debt issuers, special comments, industry studies and handbooks for credit opinion.
In 2006 Moody’s acquired Wall Street Analytics. In 2006 Moody’s also acquitted 100 percent CRA Rating Agency to form Moody’s Central Europe, 49 percent share in China Cheng Xin International Credit Rating Co. in China and in Indonesia it acquired 99 percent PT Kasnic Credit Rating to form Moody’s Indonesia.
Moody’s Corporation is listed in New York Stock Exchange and is under ticker MCO. It is parent company of Moody’s Investors Service. Revenue for FY ending 2006 was $2.037 billion, an increase of 18% from $1.731 billion for FY 2005. Operating income for the full year 2006 was $1.259 billion and net income was $753.9 million.
Moody’s operates through following two business segments.
Moody’s Investors Service
Moody’s KMV
Moody’s Investors Services – John Moody founded Moody’s Investor services in 1914. By 1924 it covered about 100 percent of United States bond market. Moody’s Investor Services provides services in international and domestic markets and publishes several rating opinions on credit obligations and credit obligators. Moody’s Investors Services is the financial leaders in the market and provide services like investment decisions and risk management.
Moody’s Investors Services offers following product and services.
By business line
Corporate Finance – Moody’s corporate finance service offers comprehensive research on more than 4000 issuers all over world, accounting for about 90 percent of market debt and 50 percent of syndicated loans. The Corporate Finance Service is made up of four segments Leveraged Finance, Investment Grade, Project Finance and Syndicated loans.
Credit Strategy – It analyzes the connectivity between debt ratings and valuations of capital markets including bond, credit default and equity. Company provides following two products
1. Moody’s MIR (Market Implied Rating): It is a research, data and analytical platform and it recognizes the difference in company’s credit risk and relative value.
2. Moody’s MIR Bulk Data Downloads: Bulk Data Downloads offer access of MIR® database or select subset. This downloaded data easily integrated into company’s computer to create interfaces and conduct several kinds of analyses.
Economics – Moody’s provides several economic data and comments from credit markets. It comments on industrial credit cycle and impact of financial news on bond yields, balance sheet of corporate and issuance. It provides services via teleconferencing or one to one.
Equity – provide services via Moody’s Portfolio Assessment Tool and Moody’s Ratings Action. These products can identify the risk in equity market.
Financial Institutions – It design the research products and several services to the investors to fulfill the needs of credit analysis.
Risk Management – Moody’s Risk Management service helps to credit-sensitive market, track historical data and projected several default and recovery rates. Risk Management products, designed to manage, measure, and price credit risk.
Sovereign Research – Sovereign Research Services is a high value tool to assess various credit risks in the international and domestic markets. Moody’s offers a range of ratings on entities, to support analysis including local and foreign currency ratings on deposits and debt.
Structured Finance – Structured Finance Product is the key source for credit ratings, data, , opinions and several analytic products in the international market. Several Moody’s products available in Structured Finance market to assist investors, issuers, and intermediaries to analyze deals and stage of a deal cycle.
US Public Finance – provides analysis and ratings coverage on public debt, which issued by local and state governments, higher education institutions, hospitals and other entities that is tax-exempt. The US Public Finance provides services like new issue reports that is available before closing of each sale.
By Product Type
Research and Opinions – It includes company research, corporate finance research, financial institutions research, US Public Finance research & RMBS research.
Monitoring Platforms & Data – It includes credit risk calculator, default risk service, financial metrics, municipal financial ration analysis & market implied ratings.
Analytic Models – It includes CDO Edge, CDOROM, Commercial mortgage metrics, market implied ratings
Training Services – It provides training & seminars in area of Credit and commercial banking. Its training is conducted in North America, EMEA, Asia/Pacific, Latin America etc. It also uses e-learning approach and provides training in credit skills diagnostic.
Moody’s KMV – It is a provider of solutions in area of quantitative credit primarily to lenders, investors & corporations. Its solutions are designed to help clients increase their business economic returns
Its products includes data collection and analysis tools, credit risk management, credit risk valuation tools and various other credit related services.