Full Description

Moody’s Corporation (Moody’s) is a provider of credit ratings and related research, data and analytical tools, quantitative credit risk measures, risk scoring software, and credit portfolio management solutions and securities pricing software and valuation models. The Company operates in two segments: Moody’s Investors Service (MIS) and Moody’s Analytics (MA). The MIS segment publishes credit ratings on a range of debt obligations and the entities that issue such obligations in markets worldwide, including various corporate and governmental obligations, structured finance securities and commercial paper programs. The MA segment develops a range of products and services that support the credit risk management activities of institutional participants in global financial markets. These offerings include quantitative credit risk scores, credit processing software, economic research, analytical models, financial data, securities pricing software and valuation models, and specialized consulting services.

In October 2008, Moody’s acquired Fermat International, a provider of risk and performance management software to the global banking sector. In December 2008, Moody’s acquired Enb Consulting Limited, a provider of training services for the financial markets, including technical and soft-skills programs for banking and capital markets professionals. Enb will be integrated into Moody’s Analytics Training Services.

The Company’s MIS segment’s revenue is derived from the originators and issuers of such transactions who use MIS’s ratings to support the distribution of their debt issues to investors. MIS provides ratings in more than 110 countries. Ratings are disseminated via press releases to the public through a variety of print and electronic media, including the Internet and real-time information systems widely used by securities traders and investors. As of December 31, 2008, MIS had ratings relationships with approximately 13,000 corporate issuers and approximately 26,000 public finance issuers. Additionally, the Company has rated and monitors ratings on approximately 109,000 structured finance obligations. MA also distributes investor-oriented research and data developed by MIS as part of its rating process, including in-depth research on major debt issuers, industry studies, and commentary on topical events. MA clients represent more than 5,000 institutions worldwide operating in approximately 120 countries. Over 30,000 client users and more than 200,000 individuals accessed Moody’s research Website.

The Company competes with Standard & Poor’s Ratings Services, The McGraw-Hill Companies, Inc., Fimalac S.A., Dominion Bond Rating Service, Ltd. of Canada, A.M. Best Company, Inc., Japan Credit Rating Agency Ltd., Rating and Investment Information Inc. of Japan (R&I), Interactive Data Corporation, Thomson-Reuters, Markit Group, CME, Intex, Mercer Oliver Wyman and Egan-Jones Ratings Company.