Moody’s(US:MCO)2020-11-12 09:51Moody's Overview - Moody's has a revenue of $5.3 billion and an adjusted operating income of $2.7 billion [6] - Moody's Investors Service (MIS) accounts for 62% of revenue, while Moody's Analytics (MA) accounts for 38% [6] - MIS has an adjusted operating margin of 61.6%, while MA has an adjusted operating margin of 28.8% [6] Financial Performance and Outlook - Moody's projects revenue between $9.95 billion and $10.15 billion for 2020 [32] - Moody's anticipates adjusted diluted EPS to be in the range of $9.95 to $10.15 for 2020 [32] - The company aims for a high single-digit percentage growth range in revenue and a high-40s percentage range in adjusted operating margin in the long term [35] - Moody's expects approximately $1.8 billion in free cash flow [34] Market and Credit Environment - The U.S high-yield spreads of ~500 bps [27] - The U.S. unemployment rate of ~8% by year-end [27] - The global trailing twelve month speculative-grade default rate at 6.4% as of September 30, 2020; expected to increase to 7.2% by December 2020 and peak at 8.1% by March 2021, before declining to 6.3% by September 2021 [75] Moody's Investors Service (MIS) - MIS has $3.3 billion in trailing twelve months (TTM) revenue [85] - MIS expects issuance to grow in the high-teens percent range from $4.6 trillion in 2019 [88] Moody's Analytics (MA) - MA has $2.0 billion in TTM revenue [120] - Bureau van Dijk (BvD) TTM 2020 Q3 revenue is approximately $400 million, representing ~33% growth [153]