Core Viewpoint - Moody's is introducing a new stablecoin rating system that could redefine how investors assess the $300 billion market for stablecoins [1] Group 1: Moody's Proposal - Moody's plans to assign deposit ratings to stablecoins based on the quality of reserve assets, market risk, and operational safeguards [1] - The proposal is open for public comment until January 29, following its announcement last Friday [1] - The increasing use of stablecoins coincides with new regulatory frameworks, such as the U.S. "Genius Act" passed in July, which provides a regulatory framework for stablecoins [1] Group 2: Evaluation Methodology - Moody's will evaluate the credit quality of each asset in the stablecoin reserve pool to calculate a weighted average [2] - The rating will be constrained by the weakest link, which is the lowest-rated asset in the reserves [2] - Five categories of liquid assets will be assessed, with cash deposits and central government securities receiving higher ratings [2] Group 3: Risk Considerations - The proposal includes considerations for liquidity and governance, as well as potential stress scenarios [2] - Moody's will assess technical risks, such as blockchain security vulnerabilities that could complicate transaction verification [2] - The new rating will not be used to evaluate the stability or investment performance of stablecoins, but rather their likelihood of timely redemption [3]

Core Points - The abrdn Income Credit Strategies Fund has declared a cash distribution of $0.328125 per share for its 5.250% Series A Perpetual Preferred Shares, payable on December 31, 2025 [1] - The Series A Preferred Shares are rated "A2" by Moody's and have an annual dividend rate of $1.3125 per share, issued at $25.00 per share on May 10, 2021 [2] - Distributions may come from various income sources, including net realized capital gains and return of capital, with tax reporting details to be provided in January 2026 [3] Company Information - Aberdeen Investments is the trade name for the investment business of Aberdeen, which includes affiliated registered investment advisers such as abrdn Inc., abrdn Investments Limited, and abrdn Asia Limited [4] - The Fund's shares are traded on the secondary market, and their investment return and principal value may fluctuate, potentially trading at a premium or discount to the net asset value [5]

Core Viewpoint - RBC Capital raised the target price for Moody's from $550 to $610 while maintaining a "Buy" rating [1] Group 1 - The target price adjustment reflects a positive outlook on Moody's performance [1] - The "Buy" rating indicates confidence in Moody's growth potential [1]

Core Insights - The article compares BB Seguridade Participacoes SA (BBSEY) and Moody's (MCO) as potential undervalued stocks for investors interested in the Financial - Miscellaneous Services sector [1] Group 1: Company Rankings and Earnings Outlook - Both BBSEY and MCO hold a Zacks Rank of 2 (Buy), indicating positive earnings estimate revisions and an improving earnings outlook for both companies [3] - The Zacks Rank emphasizes earnings estimates and revisions, which are crucial for value investors [2] Group 2: Valuation Metrics - BBSEY has a forward P/E ratio of 7.80, significantly lower than MCO's forward P/E of 33.81, suggesting BBSEY may be undervalued [5] - BBSEY's PEG ratio is 2.20, while MCO's PEG ratio is 2.80, indicating BBSEY has a more favorable valuation relative to its expected earnings growth [5] - BBSEY's P/B ratio is 5.61 compared to MCO's P/B of 21.35, further supporting the argument that BBSEY is the superior value option [6] - Based on these valuation figures, BBSEY has a Value grade of B, while MCO has a Value grade of D, highlighting BBSEY's stronger position in terms of value [6]

Core Insights - Moody's Corporation (MCO) is a leading provider of financial intelligence globally, with a market capitalization of $87.56 billion, categorizing it as a "large-cap" stock [1] Company Overview - Moody's Investors Service offers impartial credit evaluations and research to assess the creditworthiness of various entities, aiding investors in evaluating credit reliability [1] - Moody's Analytics provides data analysis, software platforms, forecasting models, risk mitigation tools, and consulting services to enhance financial strategies [2] Stock Performance - Moody's shares reached a 52-week high of $531.93 in February and a low of $378.71 in April, with a decline of 3.7% over the past three months, while the Dow Jones Industrial Average increased by 4.6% during the same period [3] - Over the past 52 weeks, Moody's stock has declined by 2%, but it gained 2.6% in the last six months, contrasting with the Dow Jones Industrial Average's gains of 6.7% and 13.3% respectively [4] Financial Results - On October 22, Moody's reported third-quarter results for fiscal 2025, with revenue increasing by 10.7% year-over-year to a record $2.01 billion, surpassing analyst expectations of $1.96 billion [5] - The adjusted EPS for the quarter was $3.92, reflecting a 22.1% annual increase and exceeding the expected $3.70 [5] Guidance Update - Moody's raised its revenue growth guidance for the current year to the high single-digit percent range, up from the previous mid-single-digit percent guidance [6] - The adjusted EPS guidance was also increased from a range of $13.50 - $14 to $14.50 - $14.75 [6]

Federal Reserve and Interest Rates - The Federal Reserve will hold its last FOMC meeting of 2025 on December 9-10, with market participants anticipating a 25 basis-point cut in the benchmark lending rate, marking the third rate cut of 0.25% in 2025 [1] - The CME FedWatch tool indicates an 84.7% probability of a 25-basis-point rate cut in December, a significant increase from 42% the previous week, with the current Fed fund rate at 3.75-4% [1] Financial Technology (Fintech) Industry - The fintech sector's performance is inversely related to interest rate movements, benefiting from a low-interest-rate environment which fosters technological improvement and product innovation [3] - The expansion of mobile and broadband networks, along with advancements in AI and machine learning, positions fintech for significant growth, revolutionizing banking, payments, and investments [4] Investment Recommendations - Five financial technology companies are recommended for investment based on favorable Zacks Ranks: Robinhood Markets Inc. (HOOD), Interactive Brokers Group Inc. (IBKR), Fair Isaac Corp. (FICO), SoFi Technologies Inc. (SOFI), and Moody's Corp. (MCO) [5] - Each of these companies currently holds either a Zacks Rank 1 (Strong Buy) or 2 (Buy) [5] Company-Specific Insights Robinhood Markets Inc. (HOOD) - Robinhood operates a financial services platform allowing users to invest in various assets, with expected revenue and earnings growth rates of 21% and 16.2% respectively for next year [10] - The company has seen improved trading revenues due to higher retail participation and solid trading activity, supported by a robust liquidity position [9][10] Interactive Brokers Group Inc. (IBKR) - IBKR's revenue growth is supported by proprietary software development, lower compensation expenses, and an expanding global footprint, with expected revenue and earnings growth rates of 5.5% and 8.1% respectively for next year [12][13] Fair Isaac Corp. (FICO) - FICO benefits from strong performance in its Scores and Software segments, with expected revenue and earnings growth rates of 19.7% and 31.3% respectively for the current year [16] - The company is expanding its scoring models and has seen increased adoption of its software solutions [15] SoFi Technologies Inc. (SOFI) - SOFI is positioned as a leader in online banking services, with expected revenue and earnings growth rates of 25.5% and 65.1% respectively for next year [19] - The company focuses on innovation and strategic partnerships to enhance its market presence [18] Moody's Corp. (MCO) - Moody's is expanding through strategic acquisitions and has a strong position in the credit rating industry, with expected revenue and earnings growth rates of 6.8% and 11.3% respectively for next year [23] - The company is benefiting from a rebound in bond issuance volume and has made significant acquisitions to enhance its market presence [22]

Core Insights - Odyssey Logistics has experienced a rapid deterioration in its debt rating, with Moody's cutting its corporate family rating to Caa-1 from B3, marking the second downgrade in less than three months [1][2] - The Caa-1 rating is classified as "junk" and is significantly below investment grade, indicating a high risk of default [2] - Prior to the recent downgrades, Odyssey held a B2 rating, which was affirmed in March 2024 [3] Rating Details - The latest downgrades occurred despite Moody's maintaining a "stable" outlook on Odyssey, which is unusual as downgrades typically follow a negative outlook [4][5] - The current Caa-1 rating is one notch below S&P Global Ratings' B- rating, which has remained unchanged since June [2] Financial Performance - Odyssey is ranked as the 80th largest brokerage with gross revenue of $169 million, which is relatively small compared to larger competitors that typically have publicly-traded debt [6] - Moody's cited high leverage and weak interest coverage as primary concerns, attributing these issues to a challenging freight market characterized by weak pricing and low volumes, leading to lower earnings and negative free cash flow [7]

Core Insights - Entegra LLC is integrating Moody's Corporation's cash flow analytics into its Trading as a Service (TaaS) platform to enhance trading visibility, transparency, and efficiency [1] Company Collaboration - The collaboration combines Moody's structured finance capabilities with Entegra's technology-driven market-making framework [1] Technology Integration - Embedding Moody's cash flow analytics into Entegra's TaaS architecture aims to improve the overall trading experience [1]

Core Viewpoint - Moody's has upgraded Italy's sovereign credit rating to Baa2 and changed the outlook to "stable," reflecting the country's political stability and effective economic policies [1][1][1] Group 1: Rating Upgrade - Moody's had maintained Italy's credit rating at Baa3 since October 2018 until this recent upgrade [1] - The upgrade indicates a robust and sustained performance in Italy's political stability and economic policy [1][1] Group 2: Economic and Fiscal Reforms - The upgrade is attributed to the effectiveness of economic and fiscal reforms, particularly under the "National Recovery and Resilience Plan" (PNRR) [1] - Italy is making good progress in achieving milestones and targets set by the PNRR, ranking among the top EU countries in terms of payment requests and disbursement amounts [1][1] Group 3: Government Response - Italy's Minister of Economy and Finance, Giancarlo Giorgetti, expressed satisfaction with Moody's decision, viewing it as a sign of confidence in the government's efforts and Italy's economic recovery [1]

Group 1 - Moody's has raised Brazil's GDP growth forecast for 2025 from 2% to 2.1% [1] - Brazil's GDP growth rates for 2026 and 2027 are expected to remain at 2% due to economic diversification and export growth [1] - China is expected to remain a significant market for Brazil's commodity exports [1]