3Q 2025 Earnings Supplemental Disclosure No content below the line No content below the line October 30, 2025 1 Always copy slides into a new presentation using Paste Options / Paste Special Use Destination Theme Default Footer text on all slides is "S&P Global – Internal Use Only" – to change / remove use Insert Tab Header & Footer Enter / change text Click Apply All. When adding colors, don't use the variants or the Standard Colors of the Theme Colors. Only use the Data Visualization colors for charts. Da ...

Financial Data and Key Metrics Changes - Moody's achieved record quarterly revenue exceeding $2 billion for the first time, representing an 11% increase from the same quarter last year [5] - Adjusted operating margin reached almost 53%, up over 500 basis points year-over-year, indicating strong operating leverage [5] - Adjusted diluted EPS was $3.92, a 22% increase from the previous year, reflecting consistent earnings power growth [5][21] 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 [6][21] - Revenue from private credit grew over 60% in the third quarter, driven by strong demand in fund finance and securitization [11] - Moody's Analytics (MA) delivered a 9% year-over-year revenue growth, with an 11% increase in decision solutions [12][28] Market Data and Key Metrics Changes - The issuance pipeline remains robust, with projected refunding needs over the next four years exceeding $5 trillion, a 10% compound annual growth rate from 2018 to 2025 [9] - Spec-grade bond maturities increased by over 20% in both the U.S. and EMEA regions, indicating a favorable backdrop for future issuance [10] - The number of private credit-related deals grew almost 70% in the third quarter, highlighting the sector's growth potential [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 [19] - Strategic partnerships, such as with Salesforce, are being leveraged to enhance customer integration and drive durable growth [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 [60] - The company anticipates continued strong demand for credit insights, particularly in the private credit market amid rising concerns about credit health [70] - Management acknowledged risks related to ongoing tariff negotiations and potential government shutdown impacts on market conditions [28] Other Important Information - Moody's is increasing its full-year guidance for adjusted diluted EPS to a range of $14.50 to $14.75, implying approximately 17% growth at the midpoint [37] - Free cash flow is expected to be around $2.5 billion, with share repurchase guidance increased to at least $1.5 billion [37] Q&A Session Summary Question: Thoughts on AI in the analytics business - Management clarified that AI is being embedded into various workflow solutions and that they have developed over 50 domain-specific agents leveraging proprietary data [41] 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 [46] Question: Proprietary data sets in KYC solutions - Management highlighted the unique data sets used in KYC solutions, including Orbis and AI-curated news, which provide a comprehensive view of business relationships [50] Question: Differences in refi walls portrayal - Management explained that the article referenced a decline in U.S. spec-grade refi walls, which is a subset of broader maturities that remain healthy [52] Question: Outlook for issuance in 2026 - Management indicated more tailwinds than headwinds for 2026, with expectations for continued strong issuance driven by M&A activity and infrastructure investments [60]

Financial Highlights - Adjusted Diluted EPS grew by 22% due to record revenue performance[9] - Quarterly revenue surpassed $2 billion, up 11% year-over-year[12] - Adjusted Operating Margin expanded 510bps to 529%[12] - MCO revenue growth increased to be in the high-single-digit percent range[12] - Adjusted Diluted EPS is up 17% at the midpoint, for a range of $1450 to $1475[12] - Free Cash Flow is approximately $25 billion[43] Moody's Investors Service (MIS) - MIS revenue reached a record high of $11 billion[9] - MIS rated issuance guidance increased to the mid-single-digit percent range[40] - Refinancing walls approximately doubled since 2018, reaching $52 trillion in September 2025[13, 14] - Year-over-year increase of 6% since previous study; stock of forward maturities remains robust, exceeding $5 trillion funding deep currents[15] - Adjusted Operating Margin increased 560 bps to 652%[26] Moody's Analytics (MA) - MA delivered 400bps of margin expansion in Q3[16] - ARR grew by 8% versus the prior year, reaching $34 billion[12] - Decision Solutions ARR is up 10%[9] - Recurring revenue accounts for 96% of total revenue[17]

Core Insights - Moody's is expected to report third-quarter 2025 results on October 22, with strong revenue growth anticipated in its Corporate Finance line, the largest revenue contributor within the Moody's Investors Service division [1][2] Corporate Finance - Global bond issuance activity remained healthy in the third quarter, driven by strong corporate refinancing needs, leading to robust leveraged loan issuance [2] - The Zacks Consensus Estimate for Corporate Finance revenues is $548.7 million, indicating a 6.5% increase year-over-year [2][10] Financial Institutions and Other Business Lines - The consensus estimate for revenues from the Financial Institutions business line is $174.9 million, suggesting a year-over-year increase of 2.9% [3] - Public, Project, and Infrastructure Finance business revenues are estimated at $155.2 million, implying nearly 1% growth [3] Structured Finance - Quarterly issuance volumes for collateral debt obligations were robust, with marginal improvements in commercial mortgage-backed securities and asset-backed securities [4] - The consensus estimate for Structured Finance revenues stands at $145.7 million, suggesting a 7.9% increase [4][10] Overall MIS Division Performance - The Zacks Consensus Estimate for MIS division revenues is $1.12 billion, implying an 8.9% year-over-year rise [5] Moody's Analytics Division - Revenues from the Moody's Analytics division are expected to have increased, with a consensus estimate of $909.52 million, indicating 9.1% growth from the prior year [6][7] - Increased expenses are anticipated due to costs related to acquisitions and restructuring efforts [7] Strategic Developments - Moody's plans to secure majority equity ownership in MERIS, a domestic credit rating agency in Egypt, enhancing its presence in the Middle East and Africa [8][9] Earnings Expectations - The Zacks Consensus Estimate for earnings is $3.65, reflecting a 13.7% rise from the previous year [12] - The consensus estimate for sales is $1.95 billion, suggesting a 7.6% increase [13]

Core Insights - PineStone Asset Management reduced its stake in Moody's Corporation by selling 46,977 shares, valued at approximately $23.7 million, during the quarter ended September 30 [2][6] - The remaining position in Moody's stands at nearly 2.3 million shares, worth about $1.1 billion, representing 6.7% of reportable assets under management (AUM) [2][3] Company Overview - Moody's Corporation has a market capitalization of $84.5 billion, with a trailing twelve months (TTM) revenue of $7.3 billion and a net income of $2.1 billion [4] - The company's shares closed at $471.04, reflecting a 3% decline over the past year, underperforming the S&P 500 by 17 percentage points [3][4] Business Model and Services - Moody's is a leading global provider of credit ratings, research, and risk analytics, leveraging its reputation and extensive data assets to deliver essential solutions to financial markets [5][8] - The company generates revenue primarily from its Moody's Investors Service and Moody's Analytics segments, offering subscription-based research, data products, credit ratings, and risk management solutions [8] Recent Performance and Outlook - Moody's reported steady recurring revenue growth across its analytics and ratings businesses, supported by disciplined cost control and increasing demand for data-driven risk insights [9] - The company is well-positioned for long-term growth, with a strong market presence, high-margin analytics growth, and a recurring revenue model, even amid cyclical credit market fluctuations [10]

Core Insights - Moody's Corp. plans to acquire a majority equity stake in Middle East Rating & Investors Service (MERIS), a domestic credit rating agency in Egypt, with deal terms undisclosed [1][3][7] Company Overview - MERIS, established in 2003, is a joint venture between Moody's and Egyptian consultancy FinBi, providing national-scale credit ratings across various sectors including financial institutions and structured finance [2][7] Strategic Rationale - The acquisition strengthens the partnership between Moody's and MERIS, enhancing Moody's presence in the Middle East and Africa, and supporting local capital market growth [3][4] - The deal is pending regulatory approvals, and MERIS will maintain its independence, including its own rating methodologies and management team [3][7] Management Commentary - Monica Merli, COO of Moody's Ratings, expressed enthusiasm about the strengthened relationship with MERIS, highlighting its importance in Egypt's domestic credit rating landscape [4] Recent Performance - Moody's shares have increased by 3.5% over the past six months, compared to a 10.6% growth in the industry [5]

Financial Performance Highlights - Moody's achieved its second-highest Q2 revenue on record[9] - Moody's Analytics (MA) Annualized Recurring Revenue (ARR) reached $33 billion, an increase of 8% year-over-year[9] - Adjusted Operating Margin increased by 130 basis points to 509%[12] - Adjusted Diluted EPS increased by 9% to $356[12] Moody's Investors Service (MIS) Performance - MIS revenue outpaced issuance by approximately 12%[13] - MIS achieved an Adjusted Operating Margin of 642%, up 100 basis points[12, 16] - Total MIS rated issuance guidance was updated to reflect a decrease in the low-single-digit to mid-single-digit percent range[27, 36] Moody's Analytics (MA) Performance - MA experienced strong recurring revenue growth, with recurring revenue accounting for 96% of total revenue[19] - MA's Adjusted Operating Margin increased by 360 basis points to 321%[12, 19] - Decision Solutions led with 10% ARR growth[12] - MA revenue grew by 11% year-over-year[19] Updated Full Year 2025 Guidance - MCO revenue growth is projected to be in the mid-single-digit percent range[10] - Adjusted Diluted EPS is now expected to be in the range of $1350 to $1400[12] - The company plans to repurchase at least $13 billion in shares[39]

Core Insights - Moody's (MCO) is set to announce its second-quarter 2025 results on July 23, with expectations of limited revenue growth in its Corporate Finance line, which is the largest revenue contributor within the Moody's Investors Service (MIS) division [1][10] - Global bond issuance activity showed some health, but there was a significant slowdown in leveraged loan issuance compared to the previous year [1][2] Corporate Finance - The consensus estimate for Corporate Finance revenues is $492 million, indicating a 6.3% decline year-over-year [2][10] - Weaker leveraged loan issuance, attributed to lower repricing activity and increased corporate debt spreads, has notably impacted revenue [2][10] Financial Institutions and Other Segments - The Financial Institutions business line is expected to generate revenues of $198 million, reflecting a year-over-year increase of 1.5% [3] - Public, Project, and Infrastructure Finance revenues are estimated at $164 million, suggesting a 6.5% increase [3] Structured Finance - Quarterly issuance volumes for collateral debt obligations were strong, but commercial mortgage-backed securities (CMBS) and asset-backed securities (ABS) saw a decline, leading to a projected 6.1% drop in Structured Finance revenues to $123 million [4][10] Overall MIS Division Performance - The consensus estimate for total MIS division revenues is $1.03 billion, indicating a 3.1% year-over-year decline [5] Moody's Analytics Division - Revenues from the Moody's Analytics (MA) division are projected to rise to $876 million, reflecting an 8.7% increase year-over-year due to rising demand and inorganic growth strategies [6][7] Key Developments - Moody's fully acquired ICR Chile in June, enhancing its presence in Latin America's credit markets, although the deal is not expected to materially impact 2025 financial results [8][9] Earnings Expectations - The Zacks Consensus Estimate for earnings is $3.42, representing a 4.3% increase from the previous year, while sales are expected to reach $1.85 billion, a 1.8% rise year-over-year [13]

Core Insights - Moody's Corporation has fully acquired ICR Chile, enhancing its position in Latin America's domestic credit markets. The financial terms of the deal remain undisclosed, and it is not expected to materially impact Moody's financial results for 2025 [1][7]. Group 1: Acquisition Details - The acquisition follows Moody's initial minority stake in ICR Chile from 2019, indicating a long-term strategic partnership [2][7]. - ICR Chile will continue to issue domestic ratings under its own methodologies, and will be integrated into Moody's Local in the coming months [2][3]. Group 2: Strategic Growth Initiatives - Moody's has been actively pursuing inorganic growth through strategic acquisitions, including recent purchases like Numerated Growth Technologies and GCR to strengthen its presence in Africa's domestic credit market [3][4]. - The acquisition of SCRiesgo in 2023 further solidified Moody's position in Central America and the Dominican Republic, contributing to revenue diversification [4]. Group 3: Expansion Beyond Credit Ratings - Moody's is also expanding its services beyond core credit ratings, with acquisitions such as CAPE Analytics and Praedicat aimed at enhancing insurance solutions and risk assessment strategies [5]. - The company is increasing its exposure to banking and insurance sectors while diversifying into professional services and ERS businesses [5]. Group 4: Market Performance - Over the past year, Moody's shares have increased by 14.8%, slightly trailing the industry's growth of 15.6% [6].

Financial Performance - Q1 2025 - S&P Global's revenue increased by 8% from $3491 million in 1Q 2024 to $3777 million in 1Q 2025[40] - The company's operating profit increased by 10% from $1738 million in 1Q 2024 to $1920 million in 1Q 2025, with the operating margin increasing by 100 bps to 508%[40] - Net income (less NCI) increased by 7% from $1258 million in 1Q 2024 to $1344 million in 1Q 2025, and diluted EPS increased by 9% from $401 to $437[40] - Adjusted Free Cash Flow, excluding certain items, decreased by 11% from $1018 million in 1Q 2024 to $901 million in 1Q 2025[40] Segment Performance - Q1 2025 - S&P Global Market Intelligence revenue increased by 5% to $1199 million, with recurring revenue accounting for 953% of the total[71] - S&P Global Ratings revenue increased by 8% to $1149 million, with transaction revenue up 7% to $620 million and non-transaction revenue up 10% to $529 million[79] - S&P Global Commodity Insights revenue increased by 9% to $612 million, with recurring revenue accounting for 794% of the total[86] - S&P Global Mobility revenue increased by 9% to $420 million, with recurring revenue accounting for 817% of the total[92] - S&P Dow Jones Indices revenue increased by 15% to $445 million, with recurring revenue accounting for 817% of the total[98] Updated 2025 Guidance - The company revised its revenue growth guidance from 5%-7% to 4%-6%[110, 116] - The company revised its operating profit margin guidance from 415%-425% to 425%-435%[110] - The company revised its diluted EPS guidance from $1420-$1445 to $1460-$1510[110]