Moody's Profit Beats Estimates on Growth of Structured Debt

Moody’s Corp. reported third-quarter profit that exceeded analysts’ estimates, as the company’s credit-ratings unit benefited from a jump in structured-debt transactions.

Net income rose 7.6 percent to $231.6 million in the three months ended Sept. 30 from $215.2 million a year earlier, the New York-based company said in a statement Friday. Profit excluding certain items was $1.11 a share, above the $1.06 average estimate of nine analysts in a Bloomberg survey.

Revenue rose 2 percent to $834.9 million from $816.1 million a year ago, Moody’s said. Revenue at Moody’s Investors Service, the credit-ratings unit that accounts for about 66 percent of sales, was flat at $548.1 million, with an increase in revenue from grading structured-finance transactions mitigating a decline in sales from corporate-debt ratings.

The results were helped by U.S. commercial real estate transactions and an increase in credit monitoring and surveillance, Moody’s said. Issuance of U.S. securitized debt and covered bonds is poised to grow by double digits for a fifth straight year and is expected to reach $501 billion in 2015, according to a Sept. 30 investor presentation.

Moody’s reaffirmed its full-year earnings guidance of $4.55 to $4.65 a share. The company’s stock price has risen nearly 6 percent this year, closing Thursday at $101.53.

(Moody’s will hold a conference call for analysts and investors at 11:30 a.m. New York time. To listen, access the company’s website at http://ir.moodys.com)

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