Financial Data and Key Metrics Changes - Moody's achieved record quarterly revenue exceeding $2 billion for the first time, marking an 11% increase from the same quarter last year [6] - Adjusted operating margin reached almost 53%, up over 500 basis points year-over-year, indicating significant operating leverage [6] - Adjusted diluted EPS was $3.92, reflecting a 22% increase from the previous year [6] Business Line Data and Key Metrics Changes - The Ratings business (MIS) reported a 12% revenue growth, surpassing $1 billion in quarterly revenue for the third consecutive quarter [7] - Transaction revenue in MIS rose 14%, with recurring revenue increasing by 8% year-over-year [20] - Moody's Analytics (MA) experienced a 9% revenue growth, with ARR reaching nearly $3.4 billion, up 8% compared to last year [12][26] Market Data and Key Metrics Changes - The issuance pipeline remains robust, with demand for debt financing strong in private credit, AI-powered data center expansion, and infrastructure development [8][9] - Refunding needs over the next four years are projected to exceed $5 trillion, indicating a compound annual growth rate of 10% from 2018 to 2025 [9] - Spec-grade bond maturities in the U.S. increased by over 20%, while EMEA spec-grade bonds and loans rose by approximately 20% [10] Company Strategy and Development Direction - Moody's is focused on investing in scalable solutions across high-growth markets while simplifying its product suite [12] - The company is expanding its presence in emerging markets, including acquiring a majority interest in Meris, a leading ratings agency in Egypt [18] - Partnerships, such as with Salesforce, are crucial for embedding data into partner ecosystems, enhancing customer integration and retention [16] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the issuance environment heading into 2026, citing tight spreads and potential Fed easing as positive factors [58] - The company anticipates continued growth in private credit and a robust M&A environment, with expectations for M&A issuance to increase by 15% to 20% for the full year 2025 [25][58] - Risks remain, including ongoing tariff negotiations and potential impacts from a prolonged government shutdown [26] Other Important Information - Moody's is increasing its full-year guidance across almost all metrics, reflecting strong growth and operating leverage [5][19] - The company is raising its adjusted diluted EPS guidance to a range of $14.50 to $14.75, implying roughly 17% growth at the midpoint compared to last year [34] - Free cash flow is anticipated to be approximately $2.5 billion, with share repurchase guidance increased to at least $1.5 billion [34] Q&A Session Summary Question: Thoughts on AI in the analytics business - Management indicated that AI is being embedded into various workflow solutions and that they have developed over 50 domain-specific agents leveraging proprietary data [38][40] Question: Impact of third quarter's record issuance - Management noted that pull forward activity is more prevalent in spec-grade than in investment-grade issuers, with healthy maturity walls expected [44] Question: Proprietary data sets in KYC solutions - Management highlighted the unique data sets used in KYC solutions, including Orbis and politically exposed persons data, which provide a comprehensive view of business relationships [47][49] Question: Differences in refi walls portrayal - Management clarified that the article referenced a decline in U.S. spec-grade refi walls, which is a subset of broader maturities, and emphasized the overall favorable refinancing environment [52][54] Question: Outlook for issuance in 2026 - Management expressed optimism about the issuance environment, citing more tailwinds than headwinds, including tight spreads and a robust M&A pipeline [58][60] Question: Concerns about private credit health - Management acknowledged potential credit stress in the private market but emphasized the importance of independent credit assessments and the flow back into public markets [70]

Financial Data and Key Metrics Changes - Moody's achieved record quarterly revenue exceeding $2 billion for the first time, marking an 11% increase from the same quarter last year [6] - Adjusted operating margin reached almost 53%, up over 500 basis points year-over-year, indicating significant operating leverage [6] - Adjusted diluted EPS was $3.92, reflecting a 22% increase from the previous year [6][34] Business Line Data and Key Metrics Changes - Moody's Investors Service (MIS) reported a 12% revenue growth, surpassing $1 billion in quarterly revenue for the third consecutive quarter [7][20] - Revenue from private credit grew over 60% in the third quarter, driven by strong demand in fund finance and business development companies [11] - Moody's Analytics (MA) revenue grew 9% year-over-year, with an ARR of nearly $3.4 billion, up 8% from last year [12][26] Market Data and Key Metrics Changes - The issuance pipeline remains robust, with projected refunding needs exceeding $5 trillion over the next four years, a 10% compound annual growth rate from 2018 to 2025 [9] - Spec-grade bond maturities in the U.S. increased by more than 20%, indicating a favorable backdrop for future issuance [10] - Investment-grade revenue declined by 17% year-over-year, reflecting a 6% drop in issuance, but overall activity remained solid due to large M&A transactions [22] Company Strategy and Development Direction - The company is focused on investing in scalable solutions across high-growth markets while simplifying its product suite [12][13] - Moody's is expanding its presence in emerging markets, acquiring a majority interest in Meris, a leading ratings agency in Egypt [18] - The strategy includes embedding AI into workflows and enhancing partnerships, such as with Salesforce, to drive growth [16][17] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the issuance environment heading into 2026, citing tight spreads and potential Fed easing as positive factors [56] - The company anticipates mid-single-digit issuance growth for the full year, with M&A activity expected to contribute positively [25] - Risks remain from ongoing trade negotiations and potential government shutdown impacts, but the updated guidance accounts for plausible scenarios [26] Other Important Information - The company is increasing its full-year guidance across almost all metrics, reflecting strong growth and operating leverage [5][19] - Free cash flow is anticipated to be approximately $2.5 billion, with share repurchase guidance increased to at least $1.5 billion [34] Q&A Session Summary Question: Thoughts on AI in the analytics business - Management indicated that AI is seen as an opportunity rather than a threat, with plans to embed AI into various workflow solutions and applications [37][39] Question: Impact of record issuance in Q3 - Management noted that pull forward activity is more prevalent in spec-grade than investment-grade issuers, with healthy maturity walls expected [43][44] Question: Proprietary data sets in KYC solutions - Management highlighted unique data sets such as Orbis and politically exposed persons data, which enhance the value of KYC solutions [46][48] Question: Differences in refi walls perception - Management clarified that the article referenced a decline in U.S. spec-grade refi walls, which is a subset of broader maturities that remain healthy [50][51] Question: Outlook for issuance in 2026 - Management expressed optimism about the issuance environment, citing tight spreads and a potential increase in M&A activity as tailwinds [56][60] Question: Growth expectations for Moody's Analytics - Management confirmed that the medium-term outlook for MA is high single-digit growth, with ongoing investments in strategic areas [72]

市场成员评价是指投资人、专家等对信用评级机构的评级质量和服务能力等情况的评价。 监管自律评价是指信用评级行业主管部门和业务管理部门、自律组织、市场基础设施对信用评级机构合 规执业能力等情况的评价。 根据信用评级机构在评价期间履行社会公益责任等情况，在评价总分基础上进行相应加分。根据信用评 级机构及相关人员在评价期间受到司法机关刑事处罚、行业主管部门和业务管理部门行政处罚或行政监 管措施、自律组织自律措施等情况，在评分总分基础上进行相应扣减，并实行累积减分，因同一行为被 采取相关措施时，按最大扣分值扣减。 参加评价的评级机构应按要求提交和披露自评材料，并保证资料真实、准确、完整（加盖公章）。参与 打分的市场机构和专家分别将加盖公章（或部门章）和签名的打分表反馈至证券业协会和交易商协会。 评价材料及打分表可使用中国证券业协会数据报送系统、NAFMII综合平台存续期服务系统提交，或通 过电子邮件等方式反馈，截止时间为2025年10月22日。 参与评价的机构和相关人员应客观公正对信用评级机构进行评价，并保守商业秘密，不得泄露可能影响 市场评价公正性的有关信息，如与评价工作存在利害关系的，应当回避。 据悉，本次评价期为 ...

Financial Data and Key Metrics Changes - Moody's reported second quarter revenue of $1.9 billion, growing 4% year over year, despite a tough comparison to the previous year's 22% growth [5][6] - Adjusted operating margin reached 50.9%, up 130 basis points from a year ago, translating to adjusted diluted EPS of $3.56, a 9% increase [6][7] - The company narrowed its guidance ranges for rated issuance, MIS revenue, and EPS based on second quarter performance [6][7] Business Line Data and Key Metrics Changes - MIS revenue was flat year over year at $1 billion, with a 1% decline when adjusted for positive FX effects [25] - Corporate Finance transaction revenue declined 6% year on year, while Investment Grade transaction revenue grew 18% on 16% issuance growth [26] - Moody's Analytics revenue grew 11%, with recurring revenue increasing by 12% and Decision Solutions showing double-digit growth [30][31] Market Data and Key Metrics Changes - Private credit transactions accounted for nearly 25% of first-time mandates, with a 75% revenue growth in private credit across multiple lines of business [10][11] - The U.S. Public Finance group rated the highest quarterly issuance volume since 2007, with nearly 200 first-time mandates in the second quarter [28] - EMEA first-time mandates increased year over year, driven by private credit mandates [29] Company Strategy and Development Direction - Moody's is focused on strengthening its position in private credit markets and enhancing transparency and insights for investors [9][10] - The company is investing in partnerships, such as with MSCI, to leverage data and models for emerging investor needs [12][17] - Moody's aims to capitalize on digital transformation, AI adoption, and the expansion of private markets to drive long-term sustainable value [41] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism for the second half of the year, citing key credit themes that could influence performance [9] - The company is monitoring macroeconomic and geopolitical uncertainties that may affect issuance volumes [38] - Management highlighted the importance of maintaining a strong pipeline and executing on growth strategies despite market challenges [52] Other Important Information - Moody's Analytics achieved a 32.1% adjusted operating margin, a 360 basis point improvement year over year [13] - The company completed the acquisition of ICR Chile, enhancing its presence in the Latin American bond market [17] - Moody's is integrating GenAI capabilities across its product portfolio, with 40% of products now including some form of GenAI enablement [20] Q&A Session Summary Question: Insights on Decision Solutions and KYC - Management acknowledged attrition from a strategic termination of a distribution partnership in KYC and ongoing ESG-related attrition, but emphasized strong growth in banking and insurance segments [45][46] Question: Potential Pull Forward of Issuance - Management indicated that there was no meaningful pull forward of issuance, noting healthy performance in both public and private credit markets [55][56] Question: Operating Margin Expansion - Management clarified that the operating margin expansion was due to disciplined expense management and not due to expense shifts from Q2 to later quarters [63][64] Question: Banking Sector Performance - Management noted that while there has been a decline in banking ARR, growth in lending products, particularly Credit Lens, is expected to drive future growth [70][71] Question: AI and GenAI Adoption - Management highlighted that while standalone AI revenue is not yet material, early adopters of GenAI are showing double the growth compared to other customers, indicating strong engagement [78][79] Question: Contribution of Private Credit to MIS Revenues - Management confirmed that private credit is contributing to several lines in the rating agency, with significant growth in asset-backed finance and first-time mandates [84][85]

Core Insights - The credit rating industry is undergoing a deep transformation due to the cancellation of mandatory rating policies and accelerated expansion of the bond market [1][2] - The focus of the industry is shifting from "serving issuers" to "serving investors," enhancing the risk pricing and forward warning functions of ratings [1][2] Group 1: Market Dynamics - Since the cancellation of mandatory rating policies in 2021, the competitive landscape among rating agencies has changed, moving from a "policy-driven" phase to a "market-oriented" cycle [2] - In Q1 2022, 14 rating agencies undertook 1,879 bond products, a year-on-year decrease of 23.65%. By Q1 2023, the number rebounded to 2,395 due to a recovery in the bond market [2] - In Q1 2024, the number of bonds rated slightly decreased to 2,246, but the demand for ratings of non-financial corporate entities significantly increased, indicating a more structured demand for rating services [2][3] Group 2: Leading Agencies - In Q1 2025, the number of rating agencies increased to 15, with a total of 2,609 bonds rated. China Chengxin International maintained a market share of 33.92%, while United Ratings' share dropped to 20.9% [3] - The top six rating agencies collectively hold over 90% of the market share, highlighting the increasing "Matthew Effect" in the industry [3] Group 3: Service Evolution - Rating agencies are optimizing their positioning and exploring niche markets such as green finance and cross-border ratings to break through market fragmentation [3][5] - United Ratings has maintained the highest market share in the financial institution issuance market for four consecutive years, with a nearly 50% share in the panda bond market [5] Group 4: Profitability and Innovation - The credit rating industry is experiencing positive changes in service efficiency and innovative business structures, with a notable increase in the forward-looking capabilities of ratings [6] - The proportion of unrated bonds rose to 63.55% in 2024, reflecting the gradual effectiveness of market mechanisms [6] Group 5: Challenges and Opportunities - Despite positive developments, the industry faces challenges such as insufficient coverage of green economy and technology innovation enterprises, as well as uneven regional service distribution [7] - The current "issuer-paid" model raises concerns about the independence of ratings, and the industry needs to enhance its credibility [7] Group 6: Technological Advancements - Rating agencies are actively reshaping their service structures to transition from traditional "debt rating" to "multi-dimensional credit services" [8] - Many agencies are exploring a "dual-track payment" mechanism to enhance service quality and credibility [8] - The industry is entering a "technology-enabled" era, with agencies leveraging AI and machine learning to improve data processing and risk modeling capabilities [9]

Core Insights - The essence of non-performing asset (NPA) business lies in liberating production factors from bad assets and reintegrating them into new combinations to create new productive forces [1][2] - The management of non-performing assets is crucial for mitigating financial risks and supporting high-quality economic development, especially during economic transitions [2][6] Group 1: Understanding Non-Performing Asset Business - The domestic non-performing asset management industry originated in the late 1990s to address financial risks and promote state-owned enterprise reforms [3] - Two prevalent theories in the industry are the "Popsicle Effect" and the "Counter-Cyclical Hypothesis," which highlight the instability of micro-value and the long macro-disposal cycles of non-performing assets [3] Group 2: Profit Logic and Social Value of Non-Performing Asset Business - The existence of asset management companies is justified by their ability to demonstrate strong vitality in the national economy over the past two decades, despite the lack of comparative advantages in asset disposal [4] - Non-performing asset management plays a vital role in reallocating production factors to adapt to the current economic transformation, thus enhancing social value [6] Group 3: Role of Rating Companies in Non-Performing Asset Business - Rating companies, as independent think tanks, should leverage their expertise to assist asset management companies in developing restructuring businesses and mastering economic risk assessments [2][9] - The collaboration between asset management companies and rating companies can lead to resource sharing and complementary advantages, enhancing the effectiveness of non-performing asset management [11] Group 4: Pathways for Rating Companies to Support Non-Performing Asset Management - Rating companies can provide meaningful research support in the high-yield and junk bond sectors, expanding the scope of non-performing assets [11][12] - By utilizing their macroeconomic research capabilities, rating companies can help identify trading opportunities and facilitate enterprise restructuring [12][13] - The collaboration can also empower state-owned asset management companies to gain insights into economic risk assessments, enhancing their role in national decision-making [13]

Group 1 - The 2025 China Brand Boao Summit awarded Dongfang Jincheng the title of "2025 Annual (Industry) Most Valuable Brand" due to its professional and efficient brand image and high-quality research output [2][4] - Dongfang Jincheng aims to build a national credit rating agency brand by continuously optimizing rating methodologies, upgrading product services, and enhancing the effectiveness of services to the real economy [4] - The company has established a multi-layered brand communication matrix with national mainstream media and authoritative information platforms, resulting in nearly 1,000 media interviews and over 5,000 media exposures annually, with more than 50 reports exceeding one million views [4] Group 2 - Dongfang Jincheng plans to continue fulfilling its mission as a state-owned rating agency, emphasizing its role in supporting the development of the real economy [4] - The company will focus on key and hot issues in economic development, collaborating with major media, information platforms, and participants in the bond market to enhance its promotional efforts and brand connotation [4] - The goal is to create a credit rating agency brand with Chinese characteristics while improving service quality [4]

Core Viewpoint - The U.S. Treasury Department is not particularly concerned about Moody's downgrade of the U.S. credit rating, as the assessments from rating agencies are considered "lagging indicators" [1] Group 1 - The downgrade by Moody's reflects a broader trend in credit ratings but is not seen as an immediate threat to the U.S. economy [1] - The Treasury Department believes that the rating agencies' evaluations do not accurately capture the current economic conditions [1] - There is an emphasis on the long-term economic fundamentals of the U.S. rather than short-term rating changes [1]

Core Viewpoint - The recent downgrade of the US credit rating by Moody's is expected to have minimal impact on the bond market, similar to the situation in 2011 when S&P downgraded the US rating, which led to significant market turmoil at that time [1][3][9]. Group 1: Historical Context - In August 2011, S&P downgraded the US from AAA to AA+, causing panic in the market, particularly in the bond market, where the 10-year Treasury yield rose by 16 basis points on the downgrade day [2][4]. - The panic in 2011 was driven by concerns that US Treasuries might no longer qualify as eligible collateral due to the downgrade, forcing many institutions to sell off their holdings [2][4]. Group 2: Changes in Market Dynamics - After 2011, contracts were rewritten to classify securities as "government securities," removing specific credit rating requirements, which means that rating changes no longer trigger forced selling or other drastic measures [1][9]. - The downgrade by Fitch in August 2023 to AA+ had almost no effect on the bond market, as the US was already considered a split-rated AA+ country prior to Moody's downgrade [3][4]. Group 3: Market Reactions - Following the 2011 downgrade, despite initial sell-offs, the 10-year Treasury yield fell significantly by 56 basis points within a month, driven by safe-haven demand and expectations of further monetary easing by the Federal Reserve [7]. - The current market environment is different, as the systemic issues that caused turmoil in 2011 are no longer present, leading to a lack of significant impact from the recent downgrade [8][9].