Along with S&P Ratings, Moody’s is a market leader in providing credit ratings on fixed-income securities. Given the embedded nature of credit ratings among investors, issuers, regulators, and index providers, Moody’s enjoys a strong competitive position and strong operating margin.
Even if issuance volume turns south, strong pricing power and GDP growth should cause a rebound in ratings revenue over time. In addition, maturing debt should support issuance levels.
Higher interest rates, corporate deleveraging, and higher spreads could cause a decline in bond issuance that will weigh on ratings revenue. Notably, spreads in 2024 and 2025 for high-yield were lower than normal, indicating relatively loose credit conditions.
Metric | MCO | MSCI | SPGI |
|---|---|---|---|
Price/Earnings (Normalized) | 30.44 | 32.23 | 26.07 |
Price/Book Value | 26.95 | — | 6.96 |
Price/Sales | 11.00 | 14.02 | 9.37 |
Price/Cash Flow | 27.22 | 28.55 | 23.71 |
Metric | MCO | MSCI | SPGI |
|---|---|---|---|
Quick Ratio | 1.12 | 0.71 | 0.64 |
Current Ratio | 1.29 | 0.82 | 0.74 |
Interest Coverage | 15.14 | 6.78 | 23.83 |
Metric | MCO | MSCI | SPGI |
|---|---|---|---|
Return on Assets (Normalized) | 19.55% | 26.79% | 9.20% |
Return on Equity (Normalized) | 85.30% | — | 18.36% |
Return on Invested Capital (Normalized) | 28.29% | 45.67% | 11.72% |
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United States