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Moody's quarterly profit beats estimates on robust demand

Published 10/25/2023, 07:57 AM
Updated 10/25/2023, 08:01 AM
© Reuters. FILE PHOTO: Signage is seen outside the Moody's Corporation headquarters in Manhattan, New York, U.S., November 12, 2021/File Photo
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(Reuters) - Ratings agency Moody's (NYSE:MCO) reported higher-than-expected profit in the third quarter on Wednesday, helped by strong demand for its research and analytics.

The New York-based company saw robust demand for its data and insights, including CreditView, its flagship credit research product.

Lesser economic uncertainty compared to last year also helped a rebound in debt issuance, further boosting Moody's business.

The company reported adjusted profit of $2.43 per share for the three months ended Sept. 30, compared with analysts' average estimate of $2.30 per share, according to LSEG data.

"We are in a new era of exponential risk which requires an urgent evolution for our customers," CEO Rob Fauber said in a statement.

© Reuters. FILE PHOTO: Signage is seen outside the Moody's Corporation headquarters in Manhattan, New York, U.S., November 12, 2021/File Photo

Moody's kept its full-year adjusted profit forecast unchanged at $9.75 to $10.25 per share.

In August, Moody's cut credit ratings of several small to mid-sized U.S. banks and said it may downgrade some of the nation's biggest lenders, warning that the sector's credit strength would likely be tested by funding risks and weaker profitability.

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