Summary
Moody's Corporation (MCO) filed its 2009 10-K on February 28, 2010, reporting on its performance during the fiscal year ending December 30, 2009. The company, a leading provider of credit ratings, research, and risk management solutions, navigated a challenging economic environment, with revenue increasing slightly year-over-year to $1.8 billion. This growth was primarily driven by a rebound in corporate finance ratings, particularly in investment-grade and high-yield debt, partially offsetting continued declines in structured finance issuance. The Moody's Analytics segment also saw growth, bolstered by acquisitions. Despite revenue growth, operating income saw a decrease due to increased expenses related to acquisitions, restructuring plans, and higher professional services costs. The company's financial position remained stable, with a focus on managing costs and strategic investments to position for future recovery in global credit markets. Moody's remains committed to its growth strategies, including international expansion and product development, while also closely monitoring evolving regulatory landscapes impacting the credit rating industry.
Financial Highlights
54 data points| Revenue | $1.80B |
| R&D Expenses | $14.30M |
| SG&A Expenses | $495.70M |
| Operating Expenses | $1.11B |
| Operating Income | $687.50M |
| Net Income | $402.00M |
| EPS (Basic) | $1.70 |
| EPS (Diluted) | $1.69 |
| Shares Outstanding (Basic) | 236.10M |
| Shares Outstanding (Diluted) | 237.80M |
Key Highlights
- 1Moody's revenue grew slightly to $1.8 billion in 2009, up from $1.76 billion in 2008, driven by increased corporate and high-yield debt ratings.
- 2The Moody's Investors Service (MIS) segment saw a 1.1% revenue increase, primarily due to strong performance in Corporate Finance (CFG), while Structured Finance (SFG) revenue declined significantly by 24.7%.
- 3Moody's Analytics (MA) segment revenue increased by 5.2% to $579.5 million, driven by acquisitions in the Risk Management Software (RMS) business.
- 4Operating income decreased by 8.1% to $687.5 million in 2009, impacted by higher operating and SG&A expenses, including costs from acquisitions and restructuring.
- 5Diluted Earnings Per Share (EPS) for 2009 was $1.69, down from $1.87 in 2008, reflecting the impact of increased expenses and the challenging market conditions.
- 6The company continued to manage its capital structure, with total debt decreasing to $1.2 billion at year-end 2009 from $1.5 billion in 2008, and maintained its share repurchase program with significant authority remaining.
- 7Moody's highlighted ongoing regulatory scrutiny and potential legislative changes affecting the credit rating agency industry in the U.S. and internationally.