Core Points - KBRA has assigned preliminary ratings to three classes of notes from Planet Fitness Master Issuer LLC, Series 2025-1, indicating a whole business securitization [1] - The Series 2025-1 Notes issuance will lead to the repayment of Series 2022-1, Class A-2-I Notes, with KBRA planning to withdraw those ratings [1] - The ratings are based on cash flow analysis and are expected to affirm existing ratings on other series of notes [1] Company Overview - Planet Fitness Holdings, Inc. operates the Planet Fitness system, known for its affordable fitness memberships starting at $15 per month, with a premium Black Card option at $24.99 per month [2] - As of September 30, 2025, Planet Fitness has a total of 2,795 clubs, including 2,514 franchised locations and 281 company-owned locations across the U.S. and internationally [2] - The pledged collateral for the securitization consists of 2,631 locations in the U.S. and territories, with approximately 90% being franchised by unit count [2] - For the twelve months ending September 30, 2025, the company generated approximately $5.2 billion in systemwide sales [2]

Core Viewpoint - KBRA has assigned preliminary ratings to 15 classes of notes issued by Pagaya AI Debt Grantor Trust 2025-8 and Pagaya AI Debt Trust 2025-8, indicating a significant unsecured consumer loan ABS transaction with varying levels of credit enhancement [1][2]. Company Overview - Pagaya Structured Products LLC, the sponsor and administrator of the transaction, is a wholly owned subsidiary of Pagaya US Holding Company LLC, which is fully owned by Pagaya Technologies Ltd, an Israeli corporation listed on NASDAQ under the ticker PGY [3]. - Pagaya Technologies operates in the financial technology sector, focusing on the lending marketplace and utilizing AI-driven credit and analysis technology [3]. Transaction Details - The total issuance of notes for PAID 2025-8 amounts to $498.5 million, with KBRA rating all classes of notes except for the Certificates, Class FR Securities, and Class F2R Securities [2]. - The transaction features initial hard credit enhancement levels ranging from 83.40% for Class A-1 Notes to 1.83% for Class F Notes, which includes overcollateralization, subordination (excluding Class F Notes), cash reserve accounts, and excess spread [1]. Methodology and Analysis - KBRA applied its Consumer Loan ABS Global Rating Methodology, Global Structured Finance Counterparty Methodology, and ESG Global Rating Methodology in analyzing the transaction's capital structure and Pagaya's historical static pool data [4]. - The agency also considered operational reviews of Pagaya and its Platform Sellers, along with periodic update calls prior to the transaction's closing [4].

Moody’s Corporation (MCO) is a premier provider of financial intelligence worldwide, structured around Moody’s Investors Service and Moody’s Analytics. The company has a market capitalization of $87.56 billion, which classifies the company as a “large-cap” stock. Moody’s Investors Service provides impartial credit evaluations, in-depth research, and tools to assess the creditworthiness of debt securities, governments, corporations, and institutions, helping investors evaluate credit reliability. More New ...

Core Viewpoint - S&P Global Ratings has downgraded Tether (USDT) to "5 (weak)", the lowest rating on its stablecoin risk scale, citing concerns over disclosure and high-risk assets in Tether's reserves [1][2]. Group 1: Rating Downgrade - S&P Global Ratings issued a downgrade of Tether to "5 (weak)", marking the lowest grade on its five-point stablecoin risk scale introduced in 2023 [1]. - The agency highlighted "persistent gaps in disclosure" and an increasing proportion of "high-risk assets" in Tether's reserves, which include bitcoin, gold, corporate bonds, and secured loans [2]. - S&P noted that these high-risk assets carry various risks, including credit, market, interest-rate, and foreign-exchange risks, and mentioned limited insight into the creditworthiness of Tether's custodians and counterparties [2]. Group 2: Tether's Response - Tether's CEO, Paolo Ardoino, criticized S&P's assessment, suggesting that the agency's methodologies are outdated and were responsible for misrating traditional financial institutions that later failed [4][5]. - Ardoino argued that Tether's reserve structure is fundamentally different from those of traditional banks and insurers, asserting that Tether's model is "overcapitalized" compared to institutions rated by legacy agencies [5]. - In response to the downgrade, Tether expressed strong disagreement with S&P's characterization, emphasizing its history of maintaining stability and redeemability of USDT during various financial crises [7].

Core Insights - The article emphasizes the potential of dividend stocks as a source of passive income for investors, highlighting their ability to provide regular income and contribute significantly to overall stock market returns [1][2]. Dividend Stocks Performance - Research indicates that dividends have accounted for 85% of the cumulative return of the S&P 500 since 1960, primarily through reinvested dividends [3]. - Dividend-paying companies have outperformed non-dividend payers over a 50-year period, with average returns of 9.2% compared to 4.3% [4]. - Companies that consistently grow their dividends have achieved annualized returns of 10.2% with lower volatility [4]. Company Profiles - **BlackRock (BLK)**: The world's largest asset manager with a market cap of $166 billion and a dividend yield of 2.04%. BlackRock has raised its dividend for 16 consecutive years, benefiting from long-term trends like growing asset prices and rising 401(k) contributions [6][9]. - **Chubb (CB)**: A leading global insurer with a market cap of $117 billion and a dividend yield of 1.26%. Chubb has increased its dividend payout for 32 consecutive years, showcasing its strong business model and capital management [10][13]. - **S&P Global (SPGI)**: A major player in credit ratings with a market cap of $149 billion and a dividend yield of 0.77%. S&P Global has raised its dividend for over 53 years and is well-positioned to benefit from rising global debt issuance [14][17]. - **Ares Capital Corporation (ARCC)**: The largest business development corporation in the U.S. with a market cap of $14 billion and a high dividend yield of 9.68%. Ares Capital has a stable portfolio and has been lending to middle-market companies for over two decades [18][22].

Core Insights - Moody's Corporation (MCO) has a market cap of $83.9 billion and operates through two segments: Moody's Analytics and Moody's Investors Service, providing credit ratings, data, analytics, and SaaS-based risk-management solutions [1] Stock Performance - Over the past 52 weeks, MCO shares have underperformed the broader market, declining slightly while the S&P 500 Index increased by 12.3% [2] - Year-to-date, MCO shares are also down compared to the S&P 500's 12.5% gain [2] - MCO shares have lagged behind the Financial Select Sector SPDR Fund's 2.7% rise over the same period [3] Financial Performance - Moody's reported Q3 2025 adjusted EPS of $3.92 and revenue of $2.01 billion, exceeding expectations [4] - The company raised its full-year outlook for adjusted EPS to between $14.50 and $14.75, projecting high-single-digit revenue growth [4] - The ratings business saw an 11% revenue increase, driven by strong bond issuance and tight credit spreads [4] Analyst Expectations - For the fiscal year ending December 2025, analysts expect Moody's adjusted EPS to grow by 17.4% year-over-year to $14.64 [5] - Moody's has a promising earnings surprise history, beating consensus estimates in the last four quarters [5] - Among 23 analysts covering the stock, the consensus rating is a "Moderate Buy," with 11 "Strong Buy" ratings, one "Moderate Buy," and 11 "Holds" [5] Price Target - Mizuho analyst Sean Kennedy raised Moody's price target to $550 while maintaining a "Neutral" rating [6] - The mean price target of $539 represents a 14.6% premium to MCO's current price levels [6] - The highest price target of $620 suggests a potential upside of 31.9% [6]

Group 1: Warren Buffett and Berkshire Hathaway - Warren Buffett has delivered compound annual returns of nearly 20% for Berkshire Hathaway since becoming CEO in 1965, with an investment of $100 growing to over $5.5 million today [1] - Buffett is stepping down as CEO at the end of this year, leaving behind a unique legacy [2] Group 2: Visa - Visa holds a leading market position in the global digital payments landscape, with total payment volume exceeding $14.2 trillion last year, outpacing competitors like Mastercard and American Express [4] - Visa benefits from strong network effects, collecting small fees on transactions without significant capital expenditures, resulting in high profit margins [5] - The company is well-positioned to benefit from rising digital transaction volumes, which increase during economic growth and inflationary periods, ensuring continued shareholder rewards [6] Group 3: Moody's - Moody's operates as one of the largest credit rating agencies in the U.S., controlling 80% of the overall credit ratings market in a duopoly with S&P Global, while Fitch Ratings holds a 12.5% share [9]

Core Viewpoint - The article discusses S&P Global Inc. (SPGI) in the context of its competition with Moody's Corporation (MCO), emphasizing the search for high-quality businesses for long-term investment portfolios [1]. Company Analysis - S&P Global Inc. is positioned as a competitor to Moody's Corporation, indicating a competitive landscape in the financial services sector focused on quality growth [1]. Investment Strategy - The investment strategy outlined involves identifying the best businesses globally to create a portfolio that aims to outperform the market over the long term [1].

Core Insights - The article discusses S&P Global Inc. (SPGI) in the context of its competitor, Moody's Corporation (MCO), highlighting the focus on identifying top-performing companies for long-term investment portfolios [1]. Company Analysis - S&P Global Inc. is positioned as a leading company in the financial services sector, with an emphasis on quality growth and long-term performance [1]. Investment Strategy - The investment strategy revolves around selecting the best businesses globally to create a portfolio that aims to outperform the market over time [1].

Core Insights - S&P Global Inc. is a significant player in financial information, analytics, and credit ratings, with a market cap of $149.5 billion, providing essential data for informed decision-making in global capital markets [1] Performance Overview - Over the past year, S&P Global's shares have underperformed the broader market, declining by 1.9% compared to a 14.1% increase in the S&P 500 Index [2] - In 2025, the stock has continued to lag, remaining slightly negative while the S&P 500 has risen by 16.4% year-to-date [2] Sector Comparison - The stock has also underperformed compared to sector peers, with the iShares U.S. Broker-Dealers & Securities Exchanges ETF gaining approximately 17.5% over the past year and 22.8% year-to-date [3] Financial Performance - On October 30, S&P Global reported strong third-quarter results, with revenue increasing by 9% year-over-year to $3.89 billion and adjusted EPS of $4.73, exceeding market expectations [4] - The company raised its full-year guidance, projecting 7-8% revenue growth and continued margin expansion, indicating confidence in its data, analytics, and ratings franchises [4] Earnings Expectations - For the current fiscal year ending in December, analysts anticipate a 13.1% growth in EPS to $17.76 on a diluted basis, with a strong earnings surprise history, having beaten consensus estimates in the last four quarters [5] - Among 26 analysts covering S&P Global, the consensus rating is a "Strong Buy," supported by 19 "Strong Buy" ratings, three "Moderate Buys," and four "Hold" ratings [5] Analyst Ratings - The analyst outlook has improved compared to two months ago, with 18 analysts now suggesting a "Strong Buy" [6] - JPMorgan Chase & Co. has adjusted its price target for S&P Global to $615 from $635 while maintaining an "Overweight" rating, citing the company's Q3 2025 earnings beat and raised full-year guidance [6]