MCO - Earnings call transcript Q3 2017

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Operator

Good day. Welcome ladies and gentlemen to the Moody’s Corporation Third Quarter 2017 Earnings Conference. At this time, I would like to inform you that this conference is being recorded and that all participants are in a listen-only mode. At the request of the Company, we will open the conference up for questions and answers following today’s presentation. I will now turn the conference over to Steve Maire, Global Head of Investor Relations and Communications. sir. ahead, go Please

Steve Maire

presentation I morning, released discuss thanks our results, Moody’s current quarter Communications. as The Financial ir.moodys.com. call. for will year as Good this of XXXX press Moody’s Global President earnings to this full Relations of results Investor the as Vice a joining outlook for teleconference on at current accompany our and morning’s XXXX. full Also and for are to and website third and XXXX. on morning, Huber, remarks Ray Executive outlook as Steve President call available everyone, both you. Maire, for conference Head Moody’s and This Officer. year prepared us well lead am this Officer, its teleconference morning Thank release well this Linda quarter third XXXX Moody’s the Chief making Chief our Executive McDaniel, is

a call the forward-looking Litigation statements of members may of I meaning we any Today’s Act contain our out listen-only such may your to mode. end like that Before the Private results materially statements, remarks set turn the of Securities SEC the Harbor attention earnings the together language, Act, call I Safe XXXX now in Exchange important call These, Management’s which and over direct available our our in factors Commission’s other and with made XX, forward-looking Ray within be I with on website attention to and filings towards on your Form the to Reform be begin, the media release. and contained report from of could on also to the found annual can the Securities Company, by this Harbor are XXXX. accordance actual which point Risk Factors In would morning year McDaniel. the the Discussion in December ended Safe the I’ll section Analysis differ in the cause those forth statements. to and on website. also the that discussed XX-K for

Ray McDaniel

Thank Moody’s conclude happy begin and thank financial follow our and quarter with everyone year-to-date call. on summarizing results. highlights. morning quarter to then by respond for to After XXXX. your Steve. prepared operating you with be for joining comments third I’ll Linda financial XXXX today’s remarks, third you, Good I details and we’ll questions. additional outlook current will our will to

I van we’re want by closed van pleased and the to new that Bureau colleagues to are have welcome addressing our begin to financial our saying Dijk results, to Bureau Before Dijk Moody’s. acquisition excited

experience van the with proving While we’ve line XX is are the far expectations. our operations is and Dijk weeks, thus positive company in very of for only Bureau be to owned our

for XX%, $XXX million, expenses million, Operating up income van up XX% and percentage will operating third metric. excluding Our diluted the amortization this August Also, of integration targets earlier efforts $XXX Dijk acquisition-related the income when totaled Operating from expenses as revenue, quarterly of well acquisition-related as billion XX% expenses third record up XX%. Dijk previously our amortization and date. from from acquisition achieving which we’re now of $XXX results was XXXX. and Dijk achieved communicated we was van guidance the are release, from in This quarter acquisitions. XXth intangibles $X.X confident all Starting quarter earnings as of Bureau van track third EPS close intangibles the we synergy quarter, the that operating adjusted X constituted million communicated, of Bureau the includes Moody’s the on acquisition. we announced In up a include points. from and about remain Bureau we

from margin are income for as Bureau margin the amortization quarter third share, for Dijk XX.X%, adjusted well The from diluted XXXX. We per as down quarter quarter The depreciation $X.XX operating XX.X%, operating XX%. in operating acquisition-related was and expenses. and $X.XX, EPS income Moody’s XXXX. van XX.X% before up as EPS of third the defining operating from quarter XX% up diluted XX.X%. was was adjusted Adjusted the down was the of

million of excludes XXXX Third foreign with quarter acquisition-related hedge or EPS $X Dijk associated currency and gain acquisition, $X.XX related per Bureau million the acquisition-related from intangibles, to amortization expenses. adjusted million $X.XX of per diluted $XX a a share van or $XX $X.XX the all share or

per EPS excludes adjusted XXXX intangibles acquisition-related or charge. from $X.XX restructuring million a $X to Third amortization $X or share related $X.XX million diluted share quarter and of all per

translation performance. was Investors million, Service of billion Revenue year-to-date billion, increase was was period. of million, at XX%. $X up non-U.S. was a Moody’s period. nine $X.X $XXX revenue non-U.S. foreign over of prior revenue the months at was billion, year prior of $X.X X%, up while U.S. XX%. prior from for non-U.S. $XXX $X.X up of currency XX%, to revenue up revenue Analytics was the XX% U.S. Moody’s Moody’s from XX% while up XX% up first million $XXX Revenue revenue XX%. The was million was XXXX the up impact period. up while was almost negligible. revenue year $XXX U.S. billion, the year Turning $X.X XX%, billion, revenue was

Bureau Dijk, expenses of from expenses totaled year almost Excluding operating for up X% Bureau percentage constituted year up nine was X% van the billion, XXXX of months X acquisition-related $X.X points. the million, Dijk period. and organic van $XXX Operating from revenue prior first period the which expenses MA prior

expense favorably XX%. up Operating by translation $X.X impacted billion, income currency X%. was Foreign

Adjusted of $X.XX the compensation. the months raising to includes to expansion XXXX purchase income affiliate, $X.XX. adjusted of The intangibles $X.XX price operating primarily Foreign first impacted CCXI, to operating share equity nine strength due per This decline to year was the favorably tax CCXI EPS a the of involving share gain, to of acquisition-related operating $X.X also for billion a we and non-taxable share the our to was underlying XX%, of up income The per accounting range full Bureau per guidance first rate for as X%. of the are the diluted related gain Gain, van a was new acquisition-related all Primarily and in Chinese share XXXX down well amortization adoption business the $X.XX Dijk strategic the and from period. year, XX.X%. by prior $X.XX Moody’s was realignment effective of a operating as expenses. translation margin benefit per the standard from XX.X% non-cash hedge margin year currency of nine performance Moody’s a $X.XX related range due for was XX.X% XX%. months

Excluding these be approximately guidance. $X.XX to the from turn items, other call now updates. results up further full-year prior range diluted anticipate in the $X.XX of to adjusted are financial provide ranges and Linda our we I’ll to on to over Both EPS $X. commentary

Linda Huber

with Thanks, the at Ray. begin Company level. revenue I’ll

total up As XX%, Moody’s total revenue revenue. revenue for third U.S. and was represented of Moody’s million mentioned, of billion, XX% record $XXX XX% $XXX Ray the million was up up of a non-U.S. quarter revenue X%, was $X.X

was Foreign XX% $XXX currency Recurring revenue revenue. represented translation million XX% by of and impacted favorably up revenue X%. total of Moody’s

increased with Investors revenue $XXX revenue was up revenue to for Looking Moody’s the million, Service. total of Total now quarter MIS revenue. at $XXX represented is million MIS XX% $XXX each XX%., business starting million, of was and of U.S. X% up our non-U.S. XX%

business lines revenue of Foreign And moving for now MIS. to MIS currency translation the X%. by favorably impacted

strong First, U.S. up rated corporate finance third and million, revenue Asian non-U.S. loans. finance investment issuance result were grade strong and as the U.S. quarter from corporate reflected well contribution revenues the was $XXX for speculative U.S. This XX%. as bond bank XX%. each a grade up

structured CMBS and non-U.S. primarily up million, revenue respectively. $XXX Second, finance issuance revenues and rated and were U.S. CLO in strong up an structured by finance transactions. U.S. XX% XX%, increase totaled driven XX%

infrastructure was increase X%, issuers revenue from while XX%. driven by financial financial institutions project X%; banking public, up X%. Asia, was U.S. and of XX%. by issuance. non-U.S. public revenue U.S. institutions result finance $XXX revenue was project decrease $XXX.X up was infrastructure up down U.S. in in infrastructure This revenue million finance EMEA increased million Third, public, in largely revenue activity finance and a an was up by down revenue issuance of was result was XX%, non-U.S. and finance this EMEA. offset driven in primarily infrequent Fourth, was while

$X to late the Finally, from of decline XXXX. for divesture MIS non-ratings ICRA Investors and XX%, to in of subsidiary which contributed million of Service, revenue MIS third, India a the attributable other non-core in is revenue down Korea ICRA consists

revenue Non-U.S. and up of now up of of MA Turning up of revenue. for was $XXX million million XX%. MA $XXX Moody’s was represented to revenue was X%. Total Analytics. million $XXX XX% total U.S. XX% revenue

Foreign revenue favorably by MA X%. currency translation impacted

Bureau the van quarter was third XXXX. organic of $XXX million, Excluding of the Dijk, up XX% third quarter from for revenue total MA XXXX

for the now of to Moving MA. lines business

and total addition Growth the as the First, non-U.S. feeds Dijk of MA X% driven strength of revenues represented research analytics, mainly credit revenue. $XXX RD&A data data and million U.S. businesses. van and XX% XX% or revenue and XX% and was RD&A, up research, well up by of was were Bureau respectively. as

quarter Dijk’s result XX% Dijk, as was the of required global revenue $XX of a deferred adjustment van third part Bureau up as van the a $XXX million, Bureau RD&A for from was revenue quarter Excluding third acquisition million organic reduced XXXX. accounting. contribution of revenue

XX% solutions Second, X% and revenue ERS revenue respectively. million sales was period. of U.S. while months XX%. ERS down up or XX from revenue $XXX X%, Trailing revenue was non-U.S. ERS prior-year and was X%, up enterprise risk the for increased

the of emphasize services shifting continue XX-month and on the XX%. with progress to make We higher product down ERS business margin trailing sales products of sales mix XX% to

services professional was respectively. totaled which The turning were third acquisition-related of X%, now expenses Bureau currency percentage the U.S. primarily acquisition-related and for Moody’s Third, intangibles was and increase van translation compensation, quarter was expenses to van million foreign operating Dijk, of expenses. operating And The accruals impact and Bureau Bureau million, expenses, and constituted of points. acquisition incentive up revenue of attributable $XX van up amortization operating XX% non-U.S. up services of higher expenses operating X expenses. $XXX from X%. X% to overall Dijk professional negligible. Dijk revenue

of in XX.X% XX.X% basis rate basis XX Adjusted the prior is points the provide standard accounting new due benefit from up operating for purchase primarily allocation. margin from taxes the XX.X%. price non-U.S. the the from As I’ll was now, XXX margin Moody’s a rate XX.X%, gain, of effective third compensation. by year and for equity was partially This hedge to the XX.X%, update increase increase tax offset down Ray XX.X%, in down Moody’s tax adoption an on the on the was XXXX. an operating from capital And quarter in of quarter points tax mentioned, period.

per During shareholders for approximately quarter of XX, part common be of stock. This on dividend the a dividend XXXX. of third declared cost million XXXX, million business stock-based cost at Moody’s XXrd, of XX, of shares of Moody’s stockholders quarterly shares the also October December $XXX.XX share close repurchased its of Moody’s plan. to on and $X.XX issued dividend regular $XX the will November average Board on an of XXX,XXX approximately Moody’s in a payable as employee per XXXX compensation of third XXXX; share. XXX,XXX its to record quarter at returned payments Directors total of $XX via

during shares of months nine of also to X.X the $XXX.XX $XXX approximately cost million employee $XXX Moody’s and a million as an approximately of dividend of XXX.X as million, a stock-based year-ago. shares to first or total million million part first XX, months per of XXXX. returned payments shareholders the September cost its Moody’s nine XXXX, totaled issued average plan. compensation its flat repurchased Outstanding X.X via of XXXX share, Over at shares

outside over close share million As of of rate billion hand, date. borrowing of at from Moody’s debt equivalents cash, $XXX credit a $X.XX XX, acquisition Total investments were At commercial Moody’s $X.X you at of August And Free decline amounted million, additional of purchase million back year the gain approximately were with capacity interest $XXX XXXX XXXX X.X% billion in U.S. the $XXX from flow now purchase for to Company Department on $XXX first XX, billion hedge approximately $X $X.X settlement share a I’ll Bureau September the offshore US$X.X XXXX first Dijk I’ll date of made with the under U.S. on authority $XXX of which approximate Justice million cash due million held the These due through purchase approximately XX% million, of announcement the the short-term billion various approximately The for the nine approximately funded general. million the with of the the $XXX items repurchase quarter. states approximately billion by quarter-end, XXXX and to XXXX. notes, to Ray. of cash, per Moody’s our XXXX, cash turn loan period. price of million payments incremental months cash debt of and a in million balance €X term nine the Cash from including billion, of and the quarter $XXX approximately months third closed walk van prior from decline was blended outstanding appreciation acquisition had had $XXX to $XXX of to nine the call the the price remaining. first an flow a euro expense cash of the of facility. issued associated $X.X these pretax. of attorneys that, combined quarter- at revolving $XXX million declines a of billion. was and or of pursuant available months to was The end price with XXXX in and paper of its $X.X financing operations of financing flow first

Ray McDaniel

is which on Moody’s full-year included changes morning’s Complete website XX the Okay. investment many guidance and the debt exchange outlook. found conditions, uncertainty materially by consumer XXXX of release, Thanks, and currency macroeconomic ir.moodys.com. rates, press is guidance of quarter be the based this earnings to XXXX business on market and acquisitions, to comments Relations about Table and list borrowing spending, Linda. results Moody’s can conclude third assumptions outlook the securitization, discussing profitability assumptions and I’ll in amount and current XXXX. for differ for prepared corporate year could our mergers our at rates, factors, the Investor capital subject interest issued. foreign These our and geopolitical for are of from including Moody’s

foreign rates. Our quarter of currency end translation outlook exchange at assumes

revenue acquisition XXXX. Bureau quarter, £X August revenue results rates $XX million will in price reflects van XXXX date to for of the the to for full a starting including a purchase third CCXI from Specifically, euro an be year reduced and intangibles €X. our full quarter exchange and for an pound all estimated expects of $XX the EPS part million acquisition-related accounting. amortization result by British guidance of in XXXX forecast of to as Dijk’s $X.XX deferred diluted $X.XX $XX Moody’s the contribution and Bureau be the XXXX Dijk’s expenses. Gain, million, the close year year acquisition incorporates $X.XX, of acquisition-related to XX, van required now full gain, as $X.XX fourth adjustment hedge the of Moody’s estimated

now related is $X.XX. the increase ranges now to expected $X.XX estimated Operating to standard in Both compensation. per decrease are low-teens benefit adjusted equity an percent new range. for include of expenses range. share XXXX EPS XX% be Excluding accounting the Moody’s revenue full-year diluted to expects tax to these expected XX% the the to in now to adoption items, $X.XX

to percent double-digit the expense the operating and approximately Free $XXX to cash settlement to expected be million. approximately now is adjusted charges expected acquisition-related Excluding is expenses, million. range. expenses low now are increase amortization and be XXXX flow in restructuring now and $XXX Depreciation expected

to the increase percent the non-U.S. be revenue U.S. finance percent in the now approximately institutions XX%. is revenue revenue now to For MIS, increase infrastructure range. range percent now low range. is increase to approximately increase percent revenue expected expected revenue Structured in low-XXs to flat. project expected low range. range. in is in percent revenue expected to revenue and in Corporate double-digit expected now finance now high-teens Public, finance is the is XXXX double-digit expects Financial increase expected now Moody’s and is to now to low-teens the increase

Non-U.S. For now low-teens to the revenue XXXX is range. increase low-XXs MA, percent to increase range. Moody’s expected now percent revenue the in expects in

to Bureau percent single-digit percent still revenue expected Dijk, expected to low-XXs Excluding now the revenue range. in is MA increase van is RD&A increase in high range. the

and revenue of Dijk, concludes expected double-digit the This Linda Excluding be Service. you have. range. Almeida, We’ll Moody’s may our percent are increase Moody’s van to our in any Investors RD&A Bureau Rob President questions remarks. still for low And of joining is me pleased the prepared session to take Analytics, question-and-answer President and Fauber, Mark

Operator

Toni first Instructions] Kaplan Morgan at Stanley. to go [Operator We’ll

Toni Kaplan

are latest change deductibility Hi. the tax how interest capped EBITDA? the of proposal, if thinking reform is Good morning. to at regard about XX% issuance you in With

Ray McDaniel

my to I’ll substantial going cap, may that anticipate difference as companies levels. on believe with But, offer structure deductibility some colleagues the reduced I the be also in issuance don’t some more add it’s may firms. tax revenue in any fundamentally to debt initial would their interest that issuance comments cap. is will going point out I to a I and capital would rate speculative and XX% don’t change reach these there at issuance. being decrease grade impact moving from to well. anticipate this that a make big be wish thoughts Certainly, from the XX% what more get thinking leverage than I benefit would much about would or debt we

this, changes of any along that attractiveness think the form I’d this in terms at favorably take So, we goes carry-forward the note any will And attention debt way. it’s obviously close of current proposed five-year also assurance. and that’s the in change look happen as to the I I bill positive. through whether part mitigating been that

Linda Huber

me. and after Linda [indiscernible] it’s Toni,

continues be would that decrease X% To look rate at XX% that fact should if tax to want EPS. think to in $X.XX proposed the the tax pass. I math, Moody’s think corporate dramatically rate, did in would do to estimated $X.XX make understand we beneficial to for everyone in be come rate sure everyone about our

be that to, full payer. whatever you would pretty like use case at back please would quite rate tax our in So, a we’re any wind but because a

Toni Kaplan

of And in MIS like prior had margins I little it the in a great were lower than bit ratings, a ask, And quarters. but think just quarter on incremental to wanted other you the looked expense one the comp incentive there an accruals release, Thanks. in Are could to drivers. increase you for you you and call mentioned give the as comp incentive the quarter? out, drivers

Linda Huber

As in pretty point of at that you see, new in catch-up we’ve target. terms guidance this increased requires have significantly we that performance our year. the That percentage of our a on completion

For we’ve includes to we’ve compensation. firm. talk And add and incentive had that in $XX of add will we’re million; the a on adjusted then, That global I’ll amount. to about corporation benefit, also had profit incentive the million salaries the to the margin. MIS sharing as And whole, approximately We $X this $XX.X question include let for thinking million Rob to compensation.

Rob Fauber

Linda. as accruals. That in to right, said, incentive growth comp The the higher expenses, is due Linda Yes. primarily MIS

our the Linda year’s that consistent at the third year, And adjusted margin year-to-date that of year-to-date is taking can see consistent largely for margins expansion. you -- look talked operating of incentive that and basis figure. you charge quarter operating last comp If see, about catch-up margin our largely for adjusted accrual points XXX restructuring is with versus prior you’ll account

Operator

We’ll go at Kramm next UBS. to Alex

Alex Kramm

yesterday, the side, your do we’ll the the us some side with like, back you mentioned come taxes, you got on thinking of be earlier as like should hitting maybe for would how other we as look about? the those rated companies pretty about because debt we But market spec days, some Is have many well? equity again. the those you obviously could Ray you Just things color. should thresholds? those early what Thanks impact, is in And then rate cetera. changes. are For like numbers the of know that when that mention when to et something Obviously, private big hard this some secondarily private be companies on debt to see today, We companies share users there’s be tax the on example, there you more can [ph] that thinking didn’t there at be worry. just are question

Ray McDaniel

into the outlook, declining should remain in which of rates. this XX obviously default in movements tight. Well, movements we’re just And spreads in some and or encourage we over for be end anticipated is the forecast year, But, terms tight next official fact, rate have next as looking the default at overall year going spreads. the of the rate further the to months,

look issuance, some So, look there’s we some items years both around rate as we at off debt very as bond rising and news fulsome good profile, -- and environment loan there the issuance for are the sectors. potentially coming in even debt at

generating that market anticipating the change directional in or not going I’m tax reform strong conditions are other So, the a be issuance. either to XXXX in

don’t but I reform be anything I can general itself, have the add proposal more tax So, that a on else outlook. would

Linda Huber

-- just euro our the one the some X.X%, view to rates, globally, as you yield default view Alex, give view high of of forecast of end year [ph] the U.S. X.X%, high and rates September, X.X%. yield default on And

on So, again benign outlook rate. default yield there pretty high

Alex Kramm

And then secondly BVD. Thank on good. just Okay, you.

numbers of week, wondered X-K is some if last seasonally that put I that business. in out the these confusion people there some some with and You think

can’t I there make year? And full add the the the the XX So, in very increasing seasonality? can for thinking quarter tracking, year fourth just of it? amortization on really a for just that you quick year [ph] business is maybe you talk the the points amortization but about that the also business fourth own what’s about, is be [ph] quarter, is back, then, EPS not should now or how add how maybe, back sense progresses, steady one, we a next How because

Linda Huber

Okay.

to how outlook Mark of view we’re of with I’m GAAP. of for And Alex, is such deferred good housekeeping we’re doing. and deal topics from way part. the the the So, view a before business take growth U.S. exciting this, going the some first difference to going the haircut and But care Mark revenue on that, about on to to the conversion is has -- speak going

Mark, So, ahead. go

Mark Almeida

the Alex, much in very, business well, is said. expectations, as very line with performing Ray our BVD very

the that the in I you we that recognized back might adjustment. very revenue I then, you third deferred in add think we for of get carrying probably, in look seven the business think that annualize the quarter, compare nice very and in thing do at the revenue showed of most is informative will only that number had And you weeks business X-K a if amount number, favorably to what mind, we filing.

we’re So, new I very of revenue that’s nice think math, sales opportunities, product with see very on if opportunities. you growth. in we’re and that number working you’ll the and business And engaged a new do what seeing some acceleration development already

very, very we going about standpoint, from is the an everything well So, and operational remain enthusiastic business. very

Ray McDaniel

seasonality, of specific is the the there but answer not think a specific seasonality see you asking. in business, lot lot just were of would don’t add is One we I some, that to a I question

Sorry, Linda.

Linda Huber

Okay.

accounting begins revenue now. class So, haircut. Deferred

this fully period as reduction of acquisition and inherited the is amortized So, contracts acquisition of over that as It adjustment this the the part is, expected a first customer revenue required of accounting. date. gets remaining the by were was

to us some XXXX is going XXXX. into in and to affect So, extent this

those of profit plus deferred need is reasonable the the do all fair sell the revenue value So, [ph] to margin. the a what cost assets we liabilities and is contracts acquired. value fair to the And

$XX by $XX total revenue the revenue be an result, haircut deferred impact, for estimated $XX a expected through XXXX. this reduced BVD’s total million, And the next continue for as QX and million. $XX about PP&A, August year impact be $XX So, QX. contribution will fiscal in about is to percent quarterly million year The million impact for is $X.XX. year and will of is in The which estimated million Alex,

Alex Kramm

Excellent.

going. keep Sorry,

Linda Huber

Okay.

reserve income transitioning couple to So, part the required Dutch and the impact is We taxes. taxes, it’s of that And U.S. software IFRS tax to under higher IFRS. requires These GAAP; had economic a of a and up U.S. do doing. nor how capitalize business, had we things. to for GAAP, two, that and on a under not from have value positions, no we hurdle small uncertain put had income to

we but two those it. small for else accounting you? So, things, can that’s do changes, Anything

Alex Kramm

I think plenty. got No, I you. Thank

Operator

We Patnaik at Barclays. will go next to Manav

Manav Patnaik

the north Linda, the margin I to BVD, being the that. standards. you of in talked in you mean, about continue presentation, XX% that on maybe IFRS just past -- The on profile

you change. just down from a of impacted guessing there step revenue down there’s year because and is gets one? just the is probably a natural And another maybe what XX% I’m guess, can on assuming for expense So, us accounting step give one, I’m little I of for -- that there how is because that the deferred change then year

So, some there? maybe just color

Linda Huber

Sure.

any operating XX%. what’s about EBITDA And So, they to speak want happening the the counting underlying that. the performance approximately about some Mark spoken GAAP is reflect may in margin don’t adjustments; under change U.S. Those are is more XX%; business. previously, of we’ve

Mark Almeida

we but line much that accounting the that when the say expected only business talked we is acquisition. announced phenomena There we of correct. what the about are what and very with what I’d we’re said here Linda some in is reporting economics

Manav Patnaik

view? Got it. much And having of term impact the then, is of an some you cetera XXXX, credit that to current I a had cetera, so of guess, of the so, our lower close was et about rate, from not we’re else et do and curious, you Ray, a that the or tax and a reduction you you something obviously proposed point stuff analysts view. if the from that and reading that deductibility, over as lot forth, probably, talked just view will in-house the reforms. I the your leverage papers that in longer the decade from know reduction. Do tax

Ray McDaniel

the grade rated cap a have sector. on deductibility should first the higher investment sector, interest all impact essentially The the and impact for not grade should significant no of of have portion speculative

their economic not that tends identifying real, side to difference. -- speculative are strong caps firms that as grade that’s back more I investing deeply for environment, a business opportunities positive of those in cyclical well. business would would And may the make firms say a be market anyway. but it’s where was I also for rating of a So, you those part that only get when for environment, a are is into the growth, quite the

if thinking et for to in growth So, business. I and benign environment mergers on are in front foot cetera, an ratings have that’s we which their acquisitions of our to think investment, a firms terms of going positive be and environment part about the

Linda Huber

just the wanted go talked about XXXX, wanted to by we Linda. further question and $XX Manav, in I have on of earlier add, $XX million back to BVD performance, forward part it’s million synergies. synergies are on that to those working, Mark, its more on in of We bit about view the with we’re we by may a that little things want XXXX. some And to synergies speak front. track that your

Mark Almeida

Yes.

very We’re both on revenue progress making expense synergies. and good

the development We’re sale with won competitor effort multiple we’ve United BVD already the We’ve month. very in from selling with closed engaged a its going parts business displaced We’ve in together And activities perspective. the Middle largest-ever recently last world. on product got joint jointly. new sales East. a customers a in of States

sales about what’s and perspective. good revenue So, we a happening feel from

On we’re expense making good realizing progress the synergies. on expense side,

We’re locations. consolidating office

New York, well. in Hong moving co-located already as with We’re forward and Kong, we’re offices Francisco other San and

very we talked side, both, we synergies think to track revenue much the deliver that on are the about. I and the So, on on expense

Linda Huber

his pleased Yes. Mark I’m I and very team. And add, would with

amortization billion, is we’ll million the to annual expense will guidance walk $X.X is $XX someone question year of Bureau this costs the in to and van than the amortization of a total bit our acquisitions. the I’ll we in want make little And in Purchase that be of and clear, entire appropriately, deal on -- can integration different in get change entirety and terms minute, expense acquisition of integration that. expect annual on price the is components that. everyone a if interested, on legacy with lighter all And order had million another per Dijk expected. the acquisition. coming through associated very We’re amortization model I from $XX the I

that we’ll on or So Manav, anything another with to move further question.

Manav Patnaik

them to down. you question wait ask and I’ll it for ask take to want someone the

Linda Huber

Thanks.

Operator

We’ll Suisse. go Singh to Credit Anj next at

Anj Singh

Hi. a the Just trying pieces what Thanks or benefitting last basis. us see strength moves have currency changed on of the are expectations a you guidance my questions. taking your underlying for to from for versus of give may it how taking Could quarter? sense constant FX

Linda Huber

Sure.

at So, is we have going in of guidance, this. let here special me what looking a bonus and with step slide through on our terms

if the slide up now, looking be that should So, right webcast. you’re at

a we earnings $X.XX to share range $X.XX. year adjusted of full started had of with So, diluted XXXX guidance per

weighted the $X.XX the legacy our $X.XX The And of MCO about that’s this given MIS step again, guidance. amortization in business accounts We have XX% it -- intangibles, have in of or have we for XX% that’s change pretty for guidance this of noted guidance up we addition acquisition-related that that about $X.XX the increase. heavily terms legacy about year toward now us of the is for of business amount. the and of

adds about the and of together, is So, you you the here, here year driven of if performance in is the in on XX% a of in to FX the the impact expect should about And Bureau got to footnotes got team $X.XX what have of of guidance for to included. terms Dijk’s that things couple terms $X.XX. new very part about get and lastly, you we’ve this that think much $X.XX about up. nodding. we’ve step those, The been And of I business or in guidance. accounting increase of $X.XX this range has we’re All add then, van looking that majority that addition $X

So, that’s good.

of So, this, less, XX% terms than to certainly attributable increase increase, in $X.XX FX. so in has the is effect minimal it a

Anj Singh

last on quarter. RD&A, And And was a happening acceleration quarter, question business for of XQ. then at the for measured bit continued a basis have that to on been know seems looking you second folks an last organic on I your some characterization guidance, in the that imply improvement

thoughts can go forward on the any outlook any So, and there? color share you updated

Ray McDaniel

RD&A have quarter. quarter. into would look we’d where if guidance in acquisition continued just Dijk before imply the And Bureau fourth for right. that van that would the had say acceleration you acceleration I that We’ve RD&A you’re in the at was third our

good happening by what’s remains and there, our there. And pleased performing and that deliver So, to expect business the we’re results well, view. we is on carry

Operator

William to McHugh at Blair. next Tim We’ll go

Tim McHugh

as want asked guess the there? [technical as you’ve I secular strong just helping all very in It’s the been but put ask I favorable piece Just rating about currency year, of that conditions been part to difficult] guess just versus the guess or you do year, credit international but business. I well this you throughout How on revisiting. much

Ray McDaniel

want you that? do Rob, to take

Rob Fauber

of this a factors talk because components cited. non-U.S. mix strong about that just it’s very you think of of of story I little a I’ll growth also kind the bit some the

Asian issuance real had is and trend; much the Europe, China, growth I U.S. Obviously, real Asian surge geopolitical had seeing we’re outside fundamental Specifically, recovery. quarter, franchise, in economic a longer we all steady the of stronger saw also that and we part reduced a be we importantly, corporate would of think strength infrastructure trend. this in that strength and story think seeing that board, corporate term revenue risk something is across secular the we’re infrastructure. that there, long-term across We our

I overall. that very think I again, to think conditions market constructive So, contribute will

Linda Huber

year this up Linda, it’s view for to flat seen banks investment for through far you if commercial can to the little major get talk Tim, year-to-date. trillion But the just that revenue X%. and are we here we’ve I’ll year -- of step we everybody in bonds investment Moody’s and not is might And align that with market this this the from grade some about investment issuance; that characterizations. so banks, the these the $X.X from Again, so that’s a think bit. want

to year, we year supposed when to flat be view for started down recall, You’ll this was last the XX.

So, what state now, I early bond of tight, billion to are three-year investment pretty Commenting be these coming the up. was would often current remain pace, seeing is $XXX remains robust. October than years expected and are greater strongly we largest the that billion. $XX end that issuance the October for off market on issuance far on where of from banks directionally think Spreads grade on record. November urge is about the everybody estimates

billion and as far of the yield $XXX substantially yield High expected. XX% strong up conditions year, is this XX% to to is grade rates, year-to-date. activity to market, at above very loan investment are last issuance Europe, full Similar are seen remains levels. bonds, on billion for issuance. the strong investor $XX year outlook high $XXX issuance investment show, for high so heavy low year XX% the spreads billion, full issuer-friendly face with yield yield right, year’s period capitalize grade is this issuance and rising CLO For busy We’ve a demand is Headed the bond near refinancing on this outlook prospect and volatility of reasonable, XX% an over on which for of for maybe everything the same grade. view from the for this banks, going talked Leveraged of year. re-pricing up coming start is loans, geopolitically. even up market again, bond Leveraged expected the contributed year, about high XXXX. the coming issuers benign investment default in That’s the relatively we the environment. And benign the three-year to

the And of seven has that inflation spreads also growth period of potential for in bonds note the Bank continue strong may is very positive rates, record are offering years a secular sentiment U.S. remains market isn’t high expect England to despite rates on historic at issuers quite good that rates. and near with Eurozone about of European which that loans. running continue the And bank fastest ceiling the rates There will We but deal due been flows. above a QE. the the rate the imminent also that lows. and rates. keep market increase remainder the trend year, across general for investor central GDP leverage that and another on decade yesterday, low U.S. first Brexit. they The remain fund compress, talked to raised Europe, Credit time lengthy -- European to quiet. in and support would both, to expect indicated that’s positive spreads rates and other has pace concerns a We impact of yield bit pipeline are serve in around

also nominee Fed a the new We as note head.

the that of about that XX%. are forward December were the well probably covers XX showing us now rate right We’re is hike

that Don’t And goes. the of seeing any pretty Rob about that the are wants at the where if see spread but banks that what to think will level. again, particularly we front terms attractive I know views in So, issuance. on caps much very more say

Rob Fauber

thing of purchases conditions monetary also our And we would is the Linda reduction I and eventually beyond of with financing the announcement it’s that other kind I program. And think their have expect view Linda monetary conditions. obviously to signaled hold only be recent normalized most. stimulus as they impact the intend at rates stuff on on planned ECB The that market Yes. towards add a pretty asset the is gradual by moderate they will said,

in issuance will with some of combined growth that economic many attractive Europe. conditions So to continue parts support

Tim McHugh

encouraged to something all bridge one $XX different [ph] that looked there can see rate. million BVD. gave was at it in he in but X-K helpful on bridge versus us? X-K million statement guess that might about Linda, the kind have more terms that you for five, before $XXX margin then, a use business. what than or of we run quarter now follow-up thought or at you versus one some I that just will of What And profit per Mark’s of million for approach, versus $XX that kind that us revenue? we on versus like what And Is

Linda Huber

talk that. Mark let I’ll Sure, about

Mark Almeida

Tim, it’s Mark.

is, difference of slowing performance business, we’re through the acceleration which the in think is I time. the seeing revenue sales the over

So, I going think what’s on. that’s basically

first light in into saw I last year from But seeing the little said, explains what today. revenue that what a as XXXX. significant think about talking acceleration. perspective acceleration, between and what flowed second the that’s half half we’re and X-K you a And difference in we’re was of The sales I

Operator

Fitzgerald. go next Foresi We’ll to Joseph Cantor at

Joseph Foresi

Hi.

Another you. BVD question for

and little takeaways? a those dive of deeper and would in performing why business Can more from into do causing the even couple you takeaways. about to of their other a expect maybe someone them, bit you What’s talked away just switch You maybe vendor come? well those

Mark Almeida

gone customers where we’ve joint product situations we’ve What was with I a had was to to couple referring of a already offering.

that so BVD So, solution more the and needs. mean, that was us a we complete frankly, more just important I of customers’ with offering opportunities product information that, together premises product we’re for there thought one were do to the And acquisition to the of comprehensive or that. was of Analytics the Moody’s part seeing

joining broader customers. by broader result, And a meet as we’re competitors. to that of our set able So, we’re able to of some displace we’re or finding set a needs product together, offerings

couple a there still a of had of we’ve it’s early us. that already. days. is And So, there examples think more for lot We opportunities

Joseph Foresi

it. Got

Linda Huber

that to explain which revenue that are at. the they’re have Joe, unusual BVD a we be, statements, Dutch just expectations -- it let financial is recall, we’re of projections people of their X-K one is And from of are things. XXXX management’s you’ll X-K synergies as couple GAAP. a audited And looking bit in an mentioned, in looking we me required growth different recall have you’ll our in numbers. The by U.S. And IFRS, regulation, formatting well that at of

as as Mark we when still two. said And add to synergies those So, come you you bridge to along, expect those before, has synergies said. the in, the can get between we

make I is want well just understood. that sure that So, to

Joseph Foresi

It it. like like with you what and reform of sounds business second in the on with is will issuance. tax got comfortable question XXXX. My be Analytics Got just the sounds It BVD. you’re ticker a fairly impact

as little front areas the So, year, margin but on are into guess about? next bit unknown what think are you Thanks. do what particularly concerned a the I you demand the as you side wondering on head well, what or I’m great

Ray McDaniel

Linda Rob, tackle in. rating jump on what why and can then seeing don’t you you’re side the

Rob Fauber

as balanced some risk. both the with a here Yes. of answer I’ll of some as the provide support well

to plan view these. And call, said, assumptions. the like And year other on But a will Christmas macro estimates shape [ph] we and So, themes XQ updated But, the on we allows that for we for us issuance Street of that end coming support do. outlook. earnings a that our always Ray’s and on our as account touched provide through growth we XXXX Wall few certainly of see us see continued that continue some geopolitical improving environment. from market that. risks, next year. enjoy Linda commodity modest very The over Ray And, on to in and to declining, we of volumes, M&A think some growth, next touched a as actually as constructive economic factors default pointed conditions; to includes And we a Linda should for and prices question number carry low marks year. look in that declining we factors into

refunding which issuance XXXX, last very will some off space, Asia’s the U.S. grow a U.S. of that just loan we seen the off bank grid in activity, The I this growth ability public the in volatility finance particularly XXXX, growth would been an is recent reifi sector very down a robust we’ve the poses of in to deceleration of point risk. in to activity increase potential in improvement has further thing investment robust pretty in see year. levels, whether throughout sharply and potential

see any really for year, one didn’t you market kind of shutdowns, If shutdowns where closed about we two market think past or the this weeks.

downside. And to were that so, provide would if that we see some obviously

Linda Huber

be to year, Sure. going we’re for to next forecast And brave enough not Joe, rate an tax estimated yet.

may happen. in does note but issuers in be insist if this each might would $X.XX we and to the for that $X.XX the we XX% that fact year. continues. us, on do we a tax do We ability that come And rate tax have the tax see in that the of again, terms to note to we would continue for about benefit rate, -- working would that price, our also price, for to with down, X% reduction view corporate X% if percentage interest MIS’s any growth We’re value fact periods, in do to if again, And rate some went lacking proceeds. We’ve bad we see shown refinancing those points really capital growth more rates XXXX-XXXX the see working for use rate has recent year-long been also economy, necessarily that XXX XXXX-XXXX, been years, the when on as activity. increases to a And issuance as we up interest in we’ve as increased. expenditures, some basis are and during condition and than and which of mostly for M&A shareholders, not Moody’s. In often well payments in increase revenue in

speculated growth condition brought has we is for move have strong to economy. other see up, of would necessarily by that And about, in thoughts. a some if And Moody’s that proceeds. may about not So, Ray is as good in been negative the rates love or broadening use again, as a

Ray McDaniel

pretty that’s comprehensive. think I

we what why questions So, got? see don’t other we

Joseph Foresi

Great.

Operator

at go We’ll Research Craig Huber next Partners. to Huber

Craig Huber

versus Couple a M&A environment Hi. characterize How year the of you U.S. questions. ago? the in would and Yes. Europe today here

Ray McDaniel

pretty obviously period investment heavy I a of been companies building thinking would We It’s years. positive in volume really remain of in couple M&A had and anticipate to very businesses. their out growth last environment are the good. M&A and about economic as enjoying

at M&A think for a we be forward I on So, going basis. should looking good environment a

Mark Almeida

modest And bank loan robust become in refi the for thing only activity a deceleration we’ve seeing M&A. be I that equity think increasingly I’d healthy that we’ve to The of other driver important of add recent we’ve Ray, will of as activity. that some M&A been has an obviously, the some market, seeing, got been which

Ray McDaniel

may convert And that activity. of bond to some over

Craig Huber

book forward much characterize business -- this for every obviously, usual? I of the refinancings ask, and feel much there’s that’s more wanted you mean, year? that for would of than so for some also to pull borrowed stuff. years, I future should year we how And How degree you how your

Ray McDaniel

has in Well, I terms strong. that of from forward think XXXX, pull very been

XXXX each of been though a lot build has year. part substantial the XXXX of refinancing story. of debt for walls, is, again, What at a maturing we’re looking So, the

fact refinancing from walls build look and profile, year, now to the XXXX, XXXX much have that doesn’t XXXX we every XXXX, So, in the its out.

to-date, an of whether have eye I we’ve a forward. profile of think. So, that’s going I keep But, to is going refinancing forward to think pull from And continue on firms refinancing to the what to question walls. more it really characterize becomes opportunistically we’ll multi-year that will been seeing seek

Craig Huber

And included profit housekeeping in was And question, that each million going think or here? quick the first quarter? Linda, compensation you the -- us, does $XX incentive wall that I it is you’re was into a share. Just if for may. just I quarters year, three give what to the break said the how number I this

Linda Huber

in goes line. Profit the sharing salary

at So, sequentially the to Craig, put up we third is whether be take we first the to million team quarter, if the thinking we’ve fourth in fourth year, this, seeing depending $XX.X quarter now. And could eyeball if million; numbers for given the $XX guidance quarter. but then, for look million; beyond for up, we’re you, the very have would had quarter, thinking given quarter just another what XXish, we’re higher, us XXish, the strong on we that right you for that sharing, we profit the $XX number quarter, the went and pops second

you. that’s So, to helpful hope

Craig Huber

those in XX Linda? it Is numbers,

Linda Huber

XX…. The

Ray McDaniel

profit X... was sharing The

Linda Huber

Again, that’s salary in the line. and ben

have in we Yes. So, do that already.

Operator

We’ll go BMO next to at Silber Capital Markets. Jeff

Jeff Silber

go got late. questions. the there numbers you’re to I but a dying want know you’d unless really going to. couple of amortization know I it’s talk I about not I’m to Linda,

the to calculation it give XXXX base XXXX, historically the the diluted we’re and in terms it of just know Just of for looking adjusted XQ EPS. Is it what was at? for what we so possible

Linda Huber

go we don’t want here, think really forma into if to that’s historical I okay. pro

Ray McDaniel

front don’t an numbers. purchase what don’t the just in I front think be I of to that of have in me. would price number be the -- think adjusted as at legacy you But, I number But, the it add-on would I would me. looking amortization have existing

Jeff Silber

compare fourth in do question how the adjusted at ask think we diluted the me that saw just for you EPS quarter? way. I’m let quarter, growth in the So, another will third looking growth If to the year-over-year

Linda Huber

give on Jeff. quarter I’m not sure the guidance to specifically, we want fourth

viewing I think that. we’re

We down will this sequentially for agencies, from last fourth but up year’s the from rating quarter potentially, year. probably be

Mark that may MA. may into quarter. on sure color, not want wants about I’m get all the is have way some we color he But, to on more fourth guidance Rob, get some that. want to directionally the to for think quarterly you correct? Rob, give I

Rob Fauber

Yes. exactly right, Linda. That’s

Jeff Silber

should Okay, fourth question, XXXX a the what great. I expense how for want quarter interest we about for be modeling question, year? to ask a

Linda Huber

the the expense And to We ramp can we talked $XX in second. get anticipating obviously ramp question, would million for the expect when lower the we that I be BVD, that fourth $XX had number quarter Sure. with you million. to first a just quarter before. you a expense excluding had would

If are is ramp $XX up million million previously. include Both to $XXX million the expense numbers $XXX to $XX from you those BVD, million. of

We have compensation. the the of addition BVD, have incentive we

And so, did And, sure I just cost XXXX or you want want full to everybody model the that correctly. quarter? can want you make the financing do

Jeff Silber

I’ll take us. whatever you to want give

Linda Huber

Okay.

the financing it, the the in a about $XXX at -- look release, costs, expense have it’s if on year-to-date, the take quarter a running and you million; want about to for So, earnings million. the the $XX borrowing we schedule

Jeff Silber

much. missed I’m sorry Thanks so that. I

Linda Huber

Okay.

Operator

hear Goldman Sachs. Next, we’ll from at Fitzgerald Conor

Conor Fitzgerald

Where of talk next of Analytics. just you’ve now BVD? morning. in the want term think could the I that over trajectory to about that Hi. Moody’s years, closed longer track do couple Good margins you

Ray McDaniel

want take you to that? Mark Sure

Mark Almeida

think to into Sure. Well, have that you decompose I really two pieces.

of expansion profitability expanding business, and BVD think We to business work the to trajectory impact the segment. the about then doing legacy we’re in We’ve talked about that think by the margins of in about margin legacy the drive the principally is? for have ERS what

quarter. look true, half other well. to MA was expansion if that, to you nine-month that’s half in of continuing you BVD the make and margin in are organic. margin delivered The results as we the the progress the We good expansion, saw quarter, that due at And on was in about

results years. margin So, van we’ll a there quarters over business. you’ve that see and to accretive coming Dijk kinds executing Then the and we we’ve got expected, to a to on the those MA That’s we’re effect. to plan, the we’re and separately, of going the margin. got It’s the high plan, Bureau pursue continuing continue be efforts

be to Analytics. that’s boost that expect we to so, And going Moody’s a profitability in

things in continue sides. to So, think of us and going them on very a our direction, I both we’ve positive got moving two efforts pursue we’ll on, both are

Conor Fitzgerald

Can comments Got declined say around And have I to sense a interest your cap the will much how XX% sensitive impact. then, market is, you an XX%? us it, thanks. around that if the flexibility you cap of think appreciate give on

Ray McDaniel

to Obviously, work you’re starting XX%. up you’re grade your or higher way XX% if into speculative issuers,

toward going to investment quantify But, down. are So, I the market, grade hypothetical caps as yes, moving be you up that obviously you. can’t for come

Linda Huber

would point we that I XX% Conor, is on UK Germany, and EBITDA believe the working the cap.

in come that view upon So is of somewhat where that that looked prospective is from. has countries, other maybe the number

Operator

We’ll go Fargo. next Wells Bill at to Warmington

Bill Warmington

And all, first welcome Steve of Good afternoon, to everyone. Maire.

Salli that got of better I think job. the that side

So, a on couple of I if BVD, questions may.

to And mentioned anything is, XXXX, deceleration in deceleration structure growth The sales helping the the drive to ask, and and -- then if I wanted that? you revenue you XXXX. XXXX in reacceleration first force in changed that the organization was

Mark Almeida

They The with legacy that business it, in product attrition product Bureau to to the working had here, things and new which build bring through in a van to Bill, really predated having a been was The short we’re a product, Dijk. to are discontinued no. market. has these the we better on seeing What were accelerate. talking of actually that involvement effect we’re product them answer, which -- now and helping replace that, the elevated our about work begin began is

and really with here involved acquisition observing to that company. didn’t aware we was the historical thing company. So, for of the do what of were a we’re our as with It we got prepared anything have

Bill Warmington

as that or S&P heard You Global’s Focus, that to to potentially and ask want Bank Orbis one mentioned SNL? viable a talked seeing place. taking I alternative that’s being about synergies about some you’re I’ve early revenue

Mark Almeida

had much together market. rated we for larger working know Yes. a of talking Bureau our with out products would That’s that that that agency a for experience product banks. on. Dijk there a We started that product a that cover with build Bureau universe extensive providing from We’ve for in right. Again, van got alternative banks. very coverage working Dijk, that’s customers the rating of van to are demand is to statistical lot area in

coming together market product to shortly. We’re now better what product with working to we with we out a be them build that be think will and will

So, that is an important product development synergy for us.

Operator

at We Autonomous. will to go next Hung Vincent

Vincent Hung

Hi. in strength source Can the this. the Maybe professional I of missed services? talk about you

Linda Huber

to speak will Mark services. professional

Mark Almeida

Yes.

analytics right. first training Moody’s You’re our services it in outsourced both up this the was Both, unit. And time businesses, was of businesses. well and business to We professional research and quarter were our frankly. India did professional in the up attributable certification quarter as for financial Analytics services in service strength our knowledge the and was in a while

a we’re but businesses third of those of that we’re we’ve very of have continue those the both both results So, over that areas. hopeful as good We quarters progress. in quarter around And string the be difficult had something going coming are able to things think turned quarters to some made well.

Vincent Hung

CompStak you expecting last be should these? SecurityScorecard. a these And investments? the Could about And smaller weeks couple in of a we lot strategic also, just of couple talk more investments of announced in

Ray McDaniel

assessments these asset areas as talk well. Rob kinds interest about and Mark businesses of couple two looking broad of interest. turn collogues, in where investments. and specially let of I’ll both, we more we’re classes. have And at be my adjacent think where a ways couple would investment I’ll comment, would But, adjacent and as to these on of I might our categorizing it Those we over

Rob Fauber

security we as we add saw to an able both to examples, that Yes. growing ours. value exposure we relevant be In partner opportunity SecurityScorecard, gain may ultimately, very think space, to cyber cyber to and some where their and to a the business ratings and

Mark Almeida

from solve couple in commercial for quite some using and for real a very a interested problem that a involved that creative information market. market. about some is technologies doing our offering transparency With with data that’s product their commercial quite enthusiastic estate perspectives of CompStak, And longstanding advanced been estate we’re real think in company expand work time, as very to we different to we’ve

exciting one CompStak interesting the for So, is opportunity and an us. an

market there of to in pursue not an these, at that, that is be mean, that’s creative and that opportunistically. a to that likelihood something would this we these us. want involved opportunity situations a I but far it’s as just doing our sure thoughtful with a and doing work more think we generally as company strategy; are attractive is the -- interesting look When I’m of I As I to about. characterize We’ll get fundamental

Operator

next Jaffray. go to at Piper Appert We’ll Peter

Peter Appert

Thanks.

on XXXX, context about in in impressive I’m in XXXX? the been growth your MIS sustainability what obviously. revenue and margins, So, the be margin of performance of slower here the could wondering pretty the has And leverage confidence

Linda Huber

get I’m going have that. we’ve of these have, Rob that here. ask X% and make sure some I’d had to about fact understands Linda. drag I’m to happening the going just to Rob it’s points that to get probably up let MIS. recurring But, Rob Peter, in warmed growth MIS can what’s to that everybody touch revenue on we in out talk

with. happy something that’s we’re that So,

we’ve new new And Secondly, He’s the got year-to-date quarter seen quarter up increase XXX so full for about far last in got to he’s XXX talk XXXX. mandates new of from he’s of more period. expectation mandates third XX% XX% been shy than year in that’s XXXX. the the a of the the for third mandates, year;

it with I’ll here. that pick from preamble, Rob So, let up

Rob Fauber

think Maybe on the story interesting out get strong is market. seen make -- of the as investments to to have or very of term, I time MIS On issuance XX% that generally, us well. volume. right. we is But, hand, a of longer coming States, That’s to one to now, is disintermediation in can of around drive when this think Tim’s the refinancing continue one first other United mandates around and we’ve continue what at the to mandate across we’re in Asia the first issuers a Look, efficiency Asia. issuance constantly sustainable. ways helps lot Through period expenses, around on profile year-to-date that looking within new margin we’ve over point in I form we It outlook Obviously, the the back question and business. maybe the Yes. activity. for volume that had but,

Ray McDaniel

they this time revenue, generally we’ve mandates margin fees add, very a establishes But, ratings. rating about high and additional source of just into not ratings translates over while of and the quality the talked drive the before. new would highest component it monitoring business, do are I because new relationships

really So, quality relationships. think new the get revenue as that we that’s those I rating best

Peter Appert

Thank it. And Got the you’ve incremental of obviously back when I the plan dialed it just know But, dialed debt can of you. in terms get load. me out? you Linda, repurchase? because back around does then, remind it

Linda Huber

repurchase about Peter, $XXX that we’re that pace made to level, said We’ve commitments to And more back plus XXXX. that delever fee have we’re we BBB Sure. XXXX path normalized to reflecting we’ve million. we’re share for and for for well. on expect rating going our do on also to XXXX for and as

on year around, million commitments million next an to honor we $XXX $XXX our hope this about to right number, for we’ll to and this So, we’re And now deleveraging. are get year, thinking is approximate Peter.

Operator

at move O’Shaughnessy We’ll James. next Patrick to Raymond

Patrick O’Shaughnessy

Hey.

So, volatility record earlier you at credit your lows or talked default research chop low team credit spreads up about are of Does that and rates this to basically the market around globe. most as back up. buying volatility down that factors some see we the buying? wind maybe in future, there Central play Bank other are And spreads bond like bond pick might and that of

Ray McDaniel

Yes.

the is a central exactly rate default But you’re factor. supply-demand, as that think at spreads narrow factor Banks what’s and we’re environment component. with seeing. also -- driving do think happened government of to low consider no forward happening that in that expectation looking I right. I There involvement one you the markets, going the terms would is rate Central a in have is credit and default low

Patrick O’Shaughnessy

the follow-up. enough. Fair potential been President pretty confirmation GSE of what maybe RMBS? nominated Trump’s of Chairperson a past. reform and And champion view vocal upside next in the for change my on extent Fed in the GSE To likelihood would then reform has your his

Ray McDaniel

the I’ve been at going opinion. GSEs. it’s been Chair. reform a -- this likelihood is I of But, my about the view, Fed new existing view. I’ve I’m of personal pessimistic a maintain not may surprised moment, be the substantial with the to corporate

Operator

you, program no to additional time. back over McDaniel, Mr. turn at have the questions We this I’ll sir.

Ray McDaniel

Okay.

just turn Linda me for to Let one second.

Linda Huber

the accounting we there, And a we for matter in fans purchase to all tables XXX, release We that received out the they should that also, XXXX. adjustments everyone be price have that make take Yes, new -- a knows quarter XX-Q sure. at wanted may had which to look sheet accounting as you of sure shortly. our will in I just on. touch as question first regarding a rule housekeeping standard wanted the far some note amortization I balance some

we material. full not this that in We we that may see of have have us You volatility, the on release. bit ranges that Q. don’t about work. that introduce standard do some the some see And impact think again, companies but quarter’s still as that what a do including in be XXX quarterly XXXX to will an over estimate will think to see material year should you’ll that continue to our a We we’re estimate will have to but about XX-Q

but take as XXX. into turn that, back with to who next to that that. over standard at you questions, of more year, wanted everyone should further a the out You I’ll have call state we’ll go about as to And have we thinking And that first for quarter that look recognition is about it Ray. just revenue

Ray McDaniel

thanks Linda. Okay. Yes,

business. everyone that call, Company’s webcast to event on will next the end February be showcasing we’ll be we’ll our the aspects remind the we before New Day Just want presentations hosting and I be of important in XX, and live, from management XXXX The Investor here York. have

look joining you you Year. And So, to with New very speaking the thank today. much forward everyone again in for the we call

Operator

once And quarter ladies again, gentlemen, conclude does Moody’s today’s earnings this call. and XXXX third

Company section As post the a revenue IR reminder, earnings the of third Moody’s XXXX will breakdown MIS call, under immediately following the homepage. this the quarter

the p.m. website. Time Additionally, a Thank you. will after call available of Moody’s this Eastern be IR replay on X.XX

Moody's (MCO) 3 Nov 172017 Q3 Earnings call transcript