Moody's Profits Rise Amid Market Volatility

Moody's reported a rise in first-quarter profits driven by its analytics unit and increased bond issuance. Despite this, the company lowered its yearly forecast due to market volatility. Revenue from analytics rose 8%, providing stability. Moody's expects 2025 earnings between $13.25 and $14 per share.

Moody's has announced a significant surge in first-quarter profits, attributing the rise to robust performance in its analytics division and a revival in bond issuance. However, the company has adjusted its annual forecast downward, reflecting concerns over market instability.

As companies hesitate on debt issuance due to unpredictable U.S. trade policies, Moody's analytics segment has reported an 8% increase in revenue, contributing a solid $859 million. This growth provides much-needed stability, as it's largely resilient to market swings, being dependent on fixed subscriptions.

CEO Rob Fauber acknowledged the challenging financial landscape but emphasized Moody's resilience across economic cycles. Analysts note that prolonged economic downturns could impact Moody's clients, potentially affecting future business; nonetheless, the company remains optimistic, projecting 2025 earnings to be between $13.25 and $14 per share.

(With inputs from agencies.)