MCO - Earnings call transcript Q4 2019

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Operator

Good day, and welcome, ladies and gentlemen to the Moody's Corporation Fourth Quarter and Full Year 2019 Earnings Conference Call. 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 question-and-answers following the presentation.

I will now turn the conference over to Shivani Kak, Head of Investor Relations. Please go ahead.

Shivani Kak

you. Thank for and fourth us XXXX quarter well our everyone to this results, for as Moody's XXXX. discuss and outlook thanks morning, on joining teleconference as Good year full full year Shivani Head Investor Relations. I'm Kak, of

are the website and morning, full quarter accompany the our for presentation year This The at XXXX. teleconference as and full well to fourth year results both as earnings released our its outlook Moody's ir.moodys.com. available for on XXXX press this release

will Officer, call Executive this Chief Mark and President Moody's prepared the McDaniel, call. conference on Kaye, Officer. making this lead Also Financial Ray morning's is Moody's remarks Chief morning

this this call, between all for measures figures. at adjusted the a mentioned During or adjusted tables and call during will filed we the end presenting earnings GAAP. morning non-GAAP refer our to be reconciliation Please of this also release, press

your forward-looking I be earnings the Before of contain may found call the Litigation XXXX. Private Reform the Act Securities Harbor can release. end towards we attention of our meaning of statements language, remarks which the to begin, within Today's Safe

could with which in results available actual contained together statement forward-looking company, Safe statements. the on from the Report direct Form the factors cause SEC accordance factors also These, attention Annual on materially are website. to in Discussion In made year ended risk XXXX Harbor that I and XX, the and forth the such by Analysis in our our the website Act, to Management's the for section with SEC's XX-K December and any those set filings and discussed differ your important on other

I'll the be in listen-only to a this of also McDaniel. call like would to I the turn morning, members out that call now Ray over the may media on point mode.

Ray McDaniel

on joining Okay. execution update year Good to to details you prepared and quarter comment Moody's summarizing and financial our with Mark fourth Thanks, happy then for on After XXXX call. an strategy. questions. will on Kaye our of and outlook respond results for everyone, the full your morning, begin follow today's I'll results, further be our our we'll XXXX. by thank Shivani. and provide remarks,

to few a with like highlights. I'd start

First Moody's in Moody's performance delivered disruption XXXX. the as prior organic achieved double-digit year of service which fourth With market quarter. investors the the well growth we as quarter for rebounding from analytics, revenue the from XX% in experienced growth fourth consecutive period, Moody's strong

Second, in prior compared of the points quarter up as XX.X% the fourth XX margin to operating period. XXXX, basis of adjusted was year

our This of EPS year Next, $X.XX core guidance the to acquisition, regulatory diluted data $X.X projected as RDC impact expected billion. share of repurchases of pleased full we XXXX introduce the adjusted or to well range $X.XX. are guidance as includes diluted

invest wide better know hoping your Bureau Dijk increasingly the a With become assessment to expand range the Moody's we acquisition, decisions. your to RDC announced offering, of our KYC van combination compliance capabilities, customer leader of to and progress I'm and RDC's about talk finally, its these areas customers. making I'll important we're to in a enhance standards. we're that And in shortly. continued ESG the as pleased and our sustainability has work engagement disclosure an customers The make in risk continue for doing new tools or data with Moody's the positions corporation, more

operating was billion strong MA driven Moody's and adjusted XX% MIS income During $X.X business by of up Moody's X%. diluted Adjusted increased revenues, XX%, a respectively. and increases revenue full XXXX, performance. X% growth, driven year X% EPS achieved by in

operating adjusted MIS, of from up in performance business was XXXX results, quarter cost was operating overall, Analytics Knowledge XX% margin MA. discipline, and growth period. XX% XX $XXX Moody's fourth a income and with segments contributed Moody's robust growth year to Moody's on across partially revenue of revenue by basis divestiture increase Moving in organic point the XX% Services offset with ongoing to MAKS. acquisitions both impact for adjusted expansion. combined the Strong XX from This of growth XX% or combined prior million drove a points

of up EPS was by XX%. $X diluted Adjusted

was market Over comparison credit market the quarter sentiment significant course became disruption in XXXX, more of in positive. evident especially periods. year prior experience the This the with fourth in

Notably, Favorable spreads macroeconomic allowed bond banks, rates, high progress accommodative and period improved substantially generally following issuance markets as on of a benign benchmark active prior of well from with year. minimal certain debt overarching as the tight in low Central geopolitical concerns, for backdrop capital stances activity. activity December yield

of a of in not source Tax enacted Jobs as disadvantages. as benchmark resulted lower another in the discussing low bonds a where XXXX. grow Act entities moment quarter tax This issuance The versus Finance, rates MIS start Public I'd of public rate refunding, rated the offset to incentivize issuance XXXX. like taxable environment fourth active sector to U.S. the XX% and was spend since Cuts seen issue by levels favorable at U.S.

We low in expect credit tight rates discuss activity which will support refinancing to the elevated and will shortly. benchmark continue Mark spreads XXXX,

successfully insights help depends act makers with decision capacity standards to on confidence. and in the ability capital that to markets operate our Our provide trusted

that transparent To focused demand historical predictive, expertise provide robust ratings. to analytical rank and credit end, predictable drives performance for remain credit ordering on our ratings. methodologies and our investor and We

to into focused you expanding strategy while and enhance As areas on geographies. continuing product businesses, new know, adjacent across ratings core and analytics assessment our is risk our our capabilities

curated I the acquisition strong leadership few to highlight announced presence Bureau unique of mentioned Starting and the that act take market. like has market. to and an to individual recently compliance is set I'd provides and On minutes for our in earlier, set a RDC, RDC fast expected Dijk's the acquisition with Chinese of million a review data our profiles, of a Moody's an products. in RDC, note, with as specialized over as accelerator know-your-customer already XX growing position van

forma build. will otherwise customer that basis products and to XXXX, be approximately compliance Together, one RDC generated for million. Dijk's $XXX solution time Bureau they van pro and stop efficient, intensive costly more sales of a will on offer to Together,

this by expect more We to figure XXXX. double than

the assessment the capabilities that opportunity at rate establish as to was a standard annual have combined addition, In last $XXX XXXX. a of worth growing approximately XX% million, been years. five global over compound a has of for very growth market market This their We're

excited about the acquisition with and its future alignment purpose clarity, presents, Moody's bringing interconnected to opportunities an and the of RDC fairness world. core knowledge

developments to I areas. in relating ensure China. to we that obviously impacted and want coronavirus our we Moving been to are working teams following have supporting that closely, very are note first to

the In of this has and employees. spirit, to the safety concern main non-profit and is to Moody's give foundation health the populations Our health for the outbreak. Asia, serving combat donated a spread the of in to the area needs local our organization

the While health. financial and markets. human is The impact and in significant global concerning immediate of is most The risk could contagion itself. impact in activity initial most affect China economic on future

importance authorities However, remains monitor largest their the That substantial to continue the and possible. economy, have and policy will impact being is we situation Chinese second tools fluid given its as at to slowdown actively. GDP. other global world's said, it a broader The certainly disposal of mitigate

an The to discuss the long-term one opportunity. our development moment important is growth a U.S. Chinese driver agreement. take market let's of trade of phase the domestic And China

commitments support. trade the are to market China we agreement and towards pleased ensuring taken bilateral certain and credit that We the rating acknowledges which therefore has steps opening agencies, important

Moody's both in market rates views U.S. as both to as XX% And China. and in agencies one market the Chinese contribute growth. the a financial we CCXI, border deal rating serve of better deepen, the in trade interest market. to and expand positive domestic for domestic development explore largest of ways continues cross to MIS the our China's that the and and to customers market through continue

including activity million cross from year year. MA, totaled for prior revenues XXXX, from up related border China and the in full XX% MIS $XXX

$XX totaled addition, million from income Moody's XXXX, year. the full year up attributable in $XX In million in from prior CCXI

with Before, Global future. I like Compact stakeholders have initiative initiatives the related we over I'd underscore sustainable to and turn our on for inclusion UNGC disclosures enhanced to the recognized the the this These that that guidelines Gender-Equality our from well a securities by Indices, from sustainability for of the recommendations Standards to Force voluntary in We highlight are commitment joined and and consistent for or related undertaken, first enhancements Bloomberg key disclosure and disclosures. Board, requirements our FTSEXGood financial ESG our Task climate the UN the to filings, which some time. Accounting satisfied Mark, Moody's

assessment Moody's Seven. acquired increasingly risk business we majority stakeholders. In Four made are becoming investors and Eiris and XXXX, stakes important in strategic capabilities, ESG in investments the Vigeo which Twenty On other our front, to

the and now integrated research in data MA. Four the MIS have with Twenty We Seven REIS network from from

investments believe holistic product Finance, which Green Chinese stake addition, and enable Moody's offer acquired to We customers ESG to leading. a industry Moody's our which In these ratings continue us market. more a the in SynTao recognize customers to as our minority provides data suite, that

in to for and recognition year diversity third another our remain party was growth Employee and culture our area. inclusion our yet strong essential to this integral prospects. XXXX of future achievements

the embedding verifiably to evolve Moody's And mindset I'm we XXXX demonstrate continue and throughout that differentiate, communities. continue and report We these to pleased our leadership CSR goal work carbon thought beyond, during was of neutral areas. towards in will our In XXXX. and to strategy

our further outlook details Kaye, on the XXXX. for call turn will and our to fourth now I Mark performance over quarter provide to

Mark Kaye

you, Ray. Thank

MIS, issuers. favorable due financial from infrequent For institution the to fourth overall revenue increase up corporate debt XX% above XX% in the prior mix from issuance and period, was quarter year and a

XX%. As a increased result transaction of favorable revenue mix, this

also dollar points Finance points XXX from expansion, offset XX transactions. supply adjusted operating Strong performance in partially Ray and taxable acquisition. of benefited MIS basis mentioned including discipline, strong Public in refunding by basis resulted cost margin As and from increases earlier, constant business organic U.S. issuance,

contributions MA digit business. and lines strong RD&A continue from of driven by to the revenue deliver double ERS growth,

earlier, digit the organic As mentioned in growth MA quarters. last delivered consecutive has double four now Ray

for grew Dijk an revenue growth as demand feed, double driven customer revenue research RD&A products, of as credit On and XX%, RD&A loyal well solution. strong and compliance delivered digit basis XX%. specifically, van by Bureau organic data

new revenue quarter and credit demand the and insurance. and ERS compliance banks assessments XX% for solutions with or for In organically, that led standards accounting loan products, for strong XX% grew enable by origination

this also RiskFirst acquisition Our growth. contributed to

to XX due and basis primarily margin On basis contraction basis, expand by In the a XXX adjusted a partially XX expenses. to the fourth XXX from by adjusted related offset quarter, trailing operating divestiture organic point constant severance and operating points, basis MA margin points, month decreased acquisitions.

program. We the quarter, offset within completed divestiture in attributable the expenses total X%, due performance. fourth operating to were partially drive operating to and year. restructuring the to incentive last strong managing expenses MAKS saving primarily expenses disciplined compensation from increased and In operating remain acquisition the by These

full XX%, total increased the MAKS higher expenses attributable the compensation, charge. restructuring incentive XXXX, year operating acquisition due For operating and expenses to to for primarily divestiture

on Turning spending, currency not Moody’s in to full XXXX include, geopolitical based and exchange acquisitions Moody’s outlook. rates, level macroeconomic activity. but and to, for investment foreign and and These year are current capital guidance. outlook corporate could subject many mergers conditions, materially about assumptions debt to for capital are markets and market year profitability the XXXX the assumptions factors. our These interest is and limited results business of differ from uncertainty

foreign assumes translation quarter of exchange guidance currency at rate. Our end

for exchange for rates of our pound euro the $X.XX, of reflects and $X.XX. U.S. Specifically, British forecast the

will U.S. mix, X.X% with elevated low that GDP guidance. a support global Relatively setting debt the underpin with stable in should believe activity. our Europe and refinancing XX, of favorable and a credit when considered and issuance. XXXX MIS of outlines rates X% variety drivers spreads we fundamentals X% issuance tight economic In X.X% to we benchmark to in growth particular, for Slide opportunistic

For product in drive XX MA, MA for RiskFirst ERS margin well support research Dijk from in core demand and performance. data van expansion as Growth will the divestiture benefiting Bureau the persist, contribution MAKS feeds strong for revenue acquisition. RD&A The from XXXX. as in will will plus business operating IFRS adjusted

will the will to highlight report and margin line we in as recent no short-term. other starting I'd business. part expected are quarter reported of with also RD&A. Analytics Moody's longer in investments solutions Services XXXX, Instead, of of first as that RDC, like the create to Professional acquisitions a learning be Our separate headwinds

rate in year enable the savings to improvement benefit full from financial $XX margin. the will from adjusted million, operating which XXXX program, the run XXXX Moody’s will restructuring performance

XXXX, of initiatives approximately that announced fund We have identified ESG, million such in China $XX efficiencies like as will expense enabling and additional technologies. we growth

full The grow forecast in will percent expenses XX% We will to to range upper anticipate in end in that XXXX range, range. XX%. then operating mid-single-digit and Moody's revenue margin of increase is year the of low-single-digit the the be operating the percent adjusted

are between anticipated million year The range to and of the net effective rate $XXX be We million. XX% interest expense $XXX to in be is full to targeting tax XX%.

and adjusted $X.XX, forecast the cash in of is flow and range diluted to to to $X.XX, Diluted the EPS $X.X $X.XX be range expected $X.X of are $X.XX billion EPS to in be Free respectively. billion. to

list XX of to For table full our of please release. earnings refer guidance, our

plan stockholders dividends. billion through capital XXXX, million than return share our $X.X more to more we billion $XXX repurchases, and In approximately of than $X.X to in of

are approximately income to similar equivalent We cash net expecting to be adjusted free to flow XXXX.

stockholders per stock, of payable XX% This regular are a to increase we on with directed that at announcing quarterly of income. to will February. is Moody's in prior increased payout dividend $X.XX target of Moody's our record dividend common March to per This net XXth quarterly dividends XX% XX% of of of of create XXth the be the the Today, of the line of Board from ratio has share. business adjusted close $X.XX share dividend dividends on

forecast economic right growth line new XXX to refinancing for condition XXXX, is be XXX by M&A. The forecast the we flat. global with A activity global supportive for XXXX. to and debt be offset chart moderating to in In mandates, approximately expected on shows our issuance

be MIS is XX%. For expect strong mandates. XX% flat margin percent MIS, total in execution growth anticipated operating in enables our issuance to increase of strategy the revenue to to range. we A first The despite time revenue adjusted mid-single-digit

the For forecast across Dijk, van businesses, the and percent well by revenue growth strong grow in total MA, sales the as ERS research range. high-single-digit data RDC we to feeds Even as further acquisition. Bureau bolstered

operating adjusted MA points acquisition. the inclusive the to impact basis of expand of expect XX%, over to We the margin XXX RDC approximately

takeaways. back call like over I emphasize a the to key turning Ray, Before would to few

decisions. prospering potential support strengthening execute regard, and Moody's RDC helping customers expansion important growth of company, strategic a that is in large another disciplined for and KYC the investments into make is our The strategy business continue management We in cost a this globally driving markets and better to assessments risk Core evolution integrated will upside. forward position step XXXX. continued margin in strength, revenue with significant acquisition

Finally, our more years, in committed XXXX. consistent than and being stewards anticipate returning to with $X.X billion good to prior we're of stockholders capital

remarks. over now Ray turn I will to back the call final for his

Ray McDaniel

event, hosting Thanks New management Mark. additional Relations everyone contact its Investor company's feature aspects event. to information will you'd XX, Moody's I the team remind presentations that on important live just next and will the March will here Please Day be like XXXX, which webcast in business. showcase like this from York City. Investor if The of about be

representative York to And few Orlando, bank to request listed attend on Moody's next are management your finally, meeting and we events. at conferences the slide expect in the a months this that in these New Please London with contact City.

joining be and session to the our Operator? Fauber, question-and-answer pleased Chief We'd is Rob your Kaye Operating remarks, and our prepared questions. concludes Officer. Mark for take This me

Operator

first Manav Patnaik you. Instructions] Our from [Operator with question Barclays. Thank comes

Manav Patnaik

Thank almost Good you. afternoon guys. afternoon, you to

question on side, first angle. that I you initiatives, this you're get, is doing all ESG had for I just slide The corporate the with your what and guess, own, the

that doing You've has helped assets which acquired side, think data that the I for the been rating credit you while. a said lot of a

looking So, incremental forward terms revenues, curious, to should your in ESG efforts I just road? what the of we in of, was else down be terms

Ray McDaniel

I'll tackle Rob, Rob let those. Sure. please?

Rob Fauber

almost afternoon Good Manav. Yes, morning or sure.

there. somewhere business don't Unlike, revenue you give a ESG ESG other that help in a some with between in are of we our $XX where index we're million million that So, $XX an of kind just revenues to space, are have monetize companies content. generating we sense perspective to ESG, us from to

two broad and the really So, and really, segments. investors issuers on we see institutions one the across other. opportunity hand, It's financial customer on

businesses and Maybe, stock also of Twenty integrating offerings in that a just about And Four range Vigeo we're Eiris the wide a content issuer leveraging Seven acquired, second. and talk to we've from for across the the MA. that

bond we sustainability and this bond that's to to hit market. going growth up like We of ongoing has the year real started is bond the think that market billion and what some in this kind seeing evolved we're has broader XXX green in call something from So, market as labeled almost XX% market, a issuance XXXX.

something And issuance through called something year. like those opinion last Vigeo on Eiris, offer second we we And of a did party bond issuers. for label XXX

world And the that ratings, loan Seven, on a working for of we've one sustainability offerings assessment other rolling sustainability us and we're makes out further offering. issuers. climate assessments, got some that in space that Twenty issuers, making to a and refinements leaders Four So, linked few we're for

over We've something risk ratings We're over on segment I then And listed climate monitoring. And content got and demand also selling companies, institutions. we we're financial REIS and stress facilities. fiscal seeing mentioned, about to that even our and second XXXX that offerings into publicly data training. our portfolio people like we're on ESG for and talked testing, said, feeds, that million investors scores now that from just scores integrating MA ESG I a as construction platform green risk

that looking those. ways a monetize number So, to all of we're

Manav Patnaik

your strategy agreements things? so referred and your forth. maybe Got you CCXI, to trade going in helpful. of partnering around comments with change then and it, license, domestic And after the that's your China, terms Does the so back or reading of side that

Ray McDaniel

market. we Yes. of services sector, sector in with joint also we CCXI, really Certainly, changing in position is, ownership it we What that's we think think in could for be us, in CCXI pursue can positive about options made agreement. can some and very for codifies our the a opening clarifies financial it view different Chinese clear and positive The was a it's venture should we the have positive. financial for agreement, we license, as the services market, trade that that trade it the a does, that the and our continue

those So, doing what is we're options. evaluating

are have today. CCXI. As in pleased I've very It previous the we we with calls, been very in business position that said has a successful

our So, do as to partner and like see future. that far CCXI, likelihood the combined I want we will venture with what to our would greatest as continue think is joint

Mark Kaye

of add to a couple Just around numbers that.

a CCXI just XXX single XXXX, which share relationships. up have estimate rating over domestic $XXX XX% the ownership a a around was had leading XX% and that agency of XX% We its in slightly We the XXXX in little has, CCXI, customer reminder market in XXXX. rating employees from and million that

Manav Patnaik

Thank you, guys.

Operator

Our Michael Cho next from question will JPMorgan. with come

Michael Cho

I guide. little more for margin the progression you those Hi, at my from how this just thinking touched you hoping about hoping the to Thanks first a taking dilution on but the XXXX I'm question. and I commentary, in variables. operating core Analytics is was guess, the I dilution impacts from of question balancing guide. commentary leverage Moody's opening are XXXX was you My investments could acquisitions doing? or margin MA around provide kinds on from

Mark Kaye

This is and I'll Mark. I'll Michael. start towards morning, Good move maybe XXXX. forward with XXXX then

note itself period. expenses, if quarter. and over in we certainly have we did quarter, fourth incentive higher margin compensation prior for XXX in and more would during above points to points the that the the the excluded that decrease of a in basis year So, It's margin quarter, basis XXX been the than severance important XXXX, report

points did look headwind we basis of that XX.X%. It's basis MA's like increase XXX in margin approximately a from on at noting increase the acquisitions XXX worth XX.X% XXXX, we a XX to And of inorganic we nonetheless, that for points from included see basis. XXXX. trailing an points XX to month did typically basis And

basis run XXXX. really saw basis rate of points or or so points XXX so, call And XXX we around it approximately a in

organic points. to MA forward XXXX, that And dollar XXX will step the of basis allocated increase is to growth for basis fully see we're we expecting approximately If what margins. a on rate points, put XX us around constant

in it's team, worth from headwinds that XX management a of As around includes ongoing that investment the also points business. noting basis

across not of only invest the to able to are in in our also we're consistently, the we years, grow profile. So terms able improving business margin

Michael Cho

looking you. regulatory you a years. pivot wanted Okay. around That's slightly Great, forma mentioned of I thank color. that data? to for revenues pro about three to double million great $XXX saw in I just

today? years? I much to data so And So, there gives Thanks. you fast in that how guess, this something few regulatory double is that growing confidence revenues

Ray McDaniel

Yes.

natural So, established really, very the offerings. as very combination of we two complimentary RDC have space. And BvD providers we talked about and fit the very its KYC between a think in they well

kind got the think that's the an going together, from end-to-end entity potential unique one ultimately solution all people integrated KYC we're space. be of really for and standard the We relatively has in So provider. have data, to that's the in customers the data the to market

think I think to growing BvD with really distribution got we've at give are combination an sales capabilities at and the the But solutions we in opportunity are growth. that particularly us got RDC, there. and MA as terms So, growth been you've The consistent generally the there. we product what of highest has the that growth the outside and BvD compliance segment seen market leveraging going the well, support U.S. to and

is support a that. segment think good So, experience further already just RDC that and we to have going we in

Michael Cho

you. Thank

Operator

next will come Our with question from UBS. Cram Alex

Alex Cram

everyone. morning good Hey,

the - I have an guess, But good year environment. you have year pretty more and to Just election, guidance little know and the issuance, but discuss how I rating on now bit you're you obviously you think out? when seeing what expect is to I'm strength side maybe so just you I far a wanted gave some uncertainty. right the and about seeing this issuance shape other what pretty good second-half,

hearing about for the a thinking corporate? be are half's this Could So, year now? you're two of how what year or just wondering, from you

Ray McDaniel

in Yes, normal have that but let the want with to we bulk around I'll January good even this and and early seen have period. handle issuance this, February, environment corporate confirm. the just Rob of Mark blackouts I we a

quarter. going let was the quarter, first as market fourth and the Mark to in that. I'm as be forward, it expected, into have continued far early going conditions tackle we good to look But, We Rob

Mark Kaye

I think we'll Alex, is do in the done to what again what your to here we've similar question, past.

talk we're internal some to Rob banks, that little drivers and turn bit I'll of follow-up hearing to a I'll about our viewpoint. the with over Now, from then issuance it

U.S. yield Starting grade. seen and banks will the to curve receptive also period. an the with The the come investment encouragingly. There out are absent to remain blackout due indications the that mostly more XXXX start spreads have volumes some Reform, be activity up slowly of of pick tight to that expectation U.S. the to largest once return earnings Furthermore, from Tax corporate offshore cash are holders will with solid in market starting markets. year the

to strong comfortable outlooks Despite for full M&A issuance, year concerns include from factors Investment are U.S. Overall, a from cautious for the to impact issuance several X%. These Grade election U.S. the banks around cycle. U.S. the start and be a of stemming the driven in Grade issuance, flat coronavirus driving second-half of tough year call potential the the the down a Investment banks. to XXXX volatility economic

spreads. issuance issuance outlook has year. to U.S. rate fix had Grade, tight U.S. the grade issuance by fixed strong U.S. expected And will speculative start driven and speculative the to the preference ongoing Investment grade years Similar for merge falling over floating rate a mixed, while rates for overall and low both deck benchmark banks bank's to is

tough they high in grade, issuance U.S. volume a in driven a that comparable lower see to yield bond indicated also and to banks particular speculative be face M&A XXXX. strong for refinancing they're the Now relatively

high noted range in to forecasts. percent bank calling later year, for macro in XXXX. U.S. also the in the the grade They elections decline are U.S. the Additionally, on speculative it broader digit their issuance uncertainty in single weighing

turning with grade from Europe. seem investment the purchases to similar, more ECBs rates. benchmark compared corporate that to but is the the bond accentuated tailwinds dynamics, Now from both in banks the U.S. maybe, Feedback market they

issuance investment in Yankee comprise grade to of or a grade encourage last value continue year. which quarter Investment than more dynamics total issuing, in a relative Europe dynamics Europe Reverse

hedge residual Now, around environment of uncertainty to political lower XXXX net and ongoing capacity in U.S. contributing outlook. addition, the all concerns conservative investment expectations issuance, for relatively macroeconomic

X% are banks the XX% investment result, between for a decline As volumes and expecting the grade year. European

impact are improved in interestingly, banks pipeline with around speculative still in then European the And or coronavirus. issuance fitting stronger grade are around policy, finally, potential rate largely European the tension, the yield high data decline fixed are economic expecting more the market of central issuance. offsetting easing bank speculative to fears slight constructive, dovish Overall, of sentiment floating grade banks debt slightly and confidence now issuance for a expectations with trade rates weak a greater be M&A flat,

And I'll talk over MISs hand it to as expectation. issuance on XXXX Rob to

Rob Fauber

Yes.

Okay.

in flattish issuance heard That quarter, in we that inclusive kind So, is and will bank to terms of own we're of our issuance. call And outlook looking in you what down loans loans. about just third consistent triangulate slightly to back Mark, what the bank at from of with we talked think be XXXX. on earnings the

is So, would up modestly I year. our very outlook, say, issuance bond over prior

we that for And calendars. M&A on it's we're to say probably contrasting is to starting are over potential elections. versus view thinking second-half Presidential a last and about to elevated banks, or forward the due the some the couple so, from moderated what comparing little that I'd we bit our levels were four And of coming that of see years. off what U.S. talked volatility kind ago the in the about very Mark months thinking Just also that, just

financing LBO and lighter bit M&A, in calendar. little a forward the So, acquisition

growth flat. modest U.S. going healthy we're was is think a we a flat range. to supported obviously, closer be, U.S. to what to end we And investment to the year, leverage by to strong I'd going refi growth, Relative what U.S. really think in tight bit after the banks, a classes few more mean, X% the down high grade, say Mark we're to touched I end, positive yield spreads we're closer bit actually activity. XXXX, in see in finance, a some those on. of that the actually that's high and high asset of little that by

And probably and year. Mark at down last probably of to see, X% leveraged on to to grade activity those down I to we're about again, in coming loans, high talked X% we're Europe, the going In pretty estimates, finance, that end similar leverage at offset what XX%. And to think expecting and that, decline calling pretty healthy to yield, leveraged kind of that of puts in the probably so a are high think in finance, which and loans terms banks close us with is I flattish see some bank European we're for. investment growth

Alex Cram

follow-up mean, very the a than the topic. anemic Europe little has ask been Europe, In U.S. issuance quick same a more on I'll great. Okay, bit I

think yourself. said I you this

negative, been recently in guess, go, too bit negative wondering a corporate I I conversations? one optimistic changed bottoms get what you mean, which guess, saw the this been seeing comments? have I'm rates. have rates the favorable. let's is off is, Sweden are has should little now that But, And hoping for at I in and maybe I'm anything or point, any country that

Ray McDaniel

Yes.

intention accommodated it economic actually that, that rates, influence far to me and fact, is the obviously, the growth. negative But, seems As is that as encourages that of in that

confidence. because of represent for what business it drag does a does

it are very and the supportive about really contributors think, property issuance and business to in But to and I are not of activity. refinancing attractive encouraging, time thinking expansion. equipment they they're so, opportunistic companies borrowing And conditions being invest plant

and driving and up flat push, a actually. investment offset, I European of high for ends modest for grade what's declines being yield. think for overall, So, I think, kind that's outlook those It the largely

Operator

Stanley. will come Toni from next The with question Morgan Kaplan

Toni Kaplan

you. Thank

growth with there's just pieces guess, implied transition, or guidance growth, we just of of bit, lot now ERS, year. regard what the the organic rate past to quarters have next continued fade MA with also, So, MA? should that you expect for a I so benefited left help in to is And could levels four high from or in us given this you moving a does start the that that? little

Rob Fauber

hi. Tony, Rob. Yes. is This

MA, have think So, organic for I I low in digit for we think would range. organically a think be when been about double will guidance our

for credit, and healthy in strong accounting That by talking both as M&A, of impact the well the for XX our demand year. now year very quarter origination obviously, some the as excluding revenue products very and solutions. ERS, we So, assessment and loan for driven was specifically, had products growth growth full IFRS our about the

talked installed for teens And bit of software us to year. have prior for for continued calls, hosted that the to the And customers high revenues overtime preference as some steady that leads revenue of kind to a purchasing about instead show we've on the software. a more subscription really and stream

and a low digit multiyear would XXXX, expect range revenue would for basis basis, And around the for the we organic software zip ongoing the RiskFirst. in is what an low of low Excluding on the been some ERS an that run probably growth digit double when rates sales in include to probably related double in installed business, rate subscription code that's somewhere you XXXX. for have teens in

Toni Kaplan

little guidance, That's a lighter very helpful. bit And flow income then free just bit but cash what had the higher. expected, on a little net maybe than we

else. anything XXXX there's that's to something guidance, conversion in if in contemplated working or anything the impacting like to wondering, with call out free cash the regard So, capital just flow

Mark Kaye

flows me Maybe more free context, the number. for Toni, things start place five approximately and XXXX a that flow, the XXXX a free it good look number was which for over I midpoint guidance, XXXX is big to cash in is at $X.X $X.XX than of our thought to exceeded XXX% If of looks net to rate I growth billion last really billion. years, and X% put cash like of income XXXX, our afternoon. just a certainly,

adjustments we're of viewpoint. a million, in XXXX, light Those vis-à-vis of impact at sort XXX-ish worth However, run the more relatively related relates incentive which normal rate, comfortable compensation. there are And to definitely additions, apples-to-apples capital make second it $XX expecting are considering that to which XXXX. were two the in

compensation quick the the reminder a in XXXX usually Just first here, following is year. of paid incentive quarter

and the in amount first this So million. case, of quarter XXXX that was $XXX

and XXXX, is that paid $XXX the the amount quarter For is incentive million. compensation XXXX, in of first

is and very with. a So, comfortable XX%, is higher you cash adjusted XX% as which the the at underlying rate adjust incentive of free management than growth the the that's EPS team if midpoint, we and compensation, something around capital rates flow feel additions in growth both the

Toni Kaplan

Thank you.

Operator

Andrew with from Nicholas come will question William Blair. Next

Andrew Nicholas

big has be things Hi, and topic a thanks Even Moody's about your questions. on more as into for evolve on what and to calls mature, players. spoken continues areas wondering the taking done she you prior I'm to ESG different of to broadly. in process, continues ratings key you've my largest the the business those industry the incorporate as the view differentiation competitive between both

Ray McDaniel

Sure, Rob.

Rob Fauber

credit into on right, touching you're integration so the just ratings. Yes,

about Eiris in we're I analysis Twenty and Four more more very to focus think, factors, our with and ESG the credit writing Vigeo and some research extensive both that and Seven leveraging climate on content. continuing

a we climate, around and reinforce that in presents think really opportunity the position for really to So, the business. that an space take ESG of thought relevance and us leadership credit that

both huge risk platform. I space, feeds, you commercial income contents. of I we're little to players, scenario ESG and able able what climate the are the We're sell and monetize going we've first and think insurance it tests coming channel. a well do We're opportunity in data we're analysis. that and answer around stress call us companies, as think who bundle the training and said, into us asking talked base that earlier kind investors about able how we're through a got fixed bit as non-commercial for to and to bundling to into REIS And I property as that. customer ESG issuer and about, through if that of to banks I'll MA, Because,

lot So, ways that. to of monetize think there's a we're be I to going able

as advantage banking customer a us, that And competitive for right. insurance base and real I see

base installed huge a customer have there. We

become I with On you rating and the more process are assessments with going companies the and climate engage and the the ratings think us companies, where to in important issuer transparent. and credit companies methodologies do the engage as us, and to more side, solutions want we these to are like ESG like

I with have engaging we the in for leverages model us that so, real world. because think And it a be opportunity that'll our issuers the around

Andrew Nicholas

to your finance Thank of on you just perspective? with Great, contrast quarter, touch competitor Is finance, quarter. is helpful, that's results mix whether structured respect to a structured Thanks. want anything And the the share there pretty from fourth largest declined need a it quickly year-over-year then, think you. would there revenue which the in big I out call market to be the or

Ray McDaniel

Sure, I'll let Rob start with this and see I add. if there's anything else can

Rob Fauber

Yes.

fourth decline almost CLO. was the structure to quarter entirely the revenue in So due

XXXX, of for this lower let Around finance. full we our deal volumes then from that quarter, trend a continues were few like on CLO total countdown other just So that of saw a primarily XX%. rated market structured lines for MIS volumes. year-over-year And, down the had slightly CLOs, to by touch volumes was where CLO and the me basis in we year in on a CLOs in the something deal second market the

CLO We're the the spreads seeing given in with some associated headwinds lending the deteriorating standards liability leverage also the for underlying collateral, market loans. wider

in we're given include about that In current finance credit coverage over time, coverage, and CLOs structured are for demand less up the when We in terms of ratings, the certain classes MIS investor quarter, seeing shows sometimes risk see concerns environment. that lower. in asset that

and RMBS, towards robust for think another was asset CMBS borrower classes. deal U.S. a we've pretty the strong And saw growth is competitive Moving the as activity. I essentially particularly general, line that weighted spurred in the U.S. past, activity pretty in important in that was the in volumes other in CMBS single The talked activity revenue revenues us couple flat. those assets, was to ABS about deals. But, were year spreads modestly. single XXXX some pretty grew a quarter, market. structured, rating it's We for growth by which of attractive a and in

was bit, down main Europe, driver again, I mostly the is have there. been CLO talking about a the U.S. and Europe

Ray McDaniel

want quality the saying, a is very carefully emphasize we access in that more the suited. think into this markets in cycle, capital to going just causing point in what don't really think that point was very quality, it's the I liberal deterioration credits with to respect and underlying what the the have particular, with a credit And rated credit increasingly combination had, low about is approach or CLOs easy in are. of us time Rob to where loan And assets to in covenant

Andrew Nicholas

Got it. Thank you.

Operator

The next come from with Markets. will BMO Jeff question Capital Silber

Jeff Silber

so the much. there model? a guidance out But you kind help perspective? you I quarter. side Thank don't to interested of by call specific seasonal margin I'm is specifically on from anything to provide know us more Thanks.

Ray McDaniel

anything Mark margin? on

Mark Kaye

element is the year. results, expecting better just in sort the XXXX if above in to expected about and on of the line, way to line to the definitely the above think minute being want I for we're line, or at called are that than are least, growth And we same a given last the XXXX a of because I than related the try developed. second-half comfortable first-half of lower XXXX the in elements below of a I'll year, in touch revenue period But, revenue expected higher and way key rates that slightly are vis-à-vis the vis-à-vis certainly, year there the expecting single typically Jeff, this there's sort it's think tax.

And be through EPS seasonality the that this the tax but that's account, are the recognized around line, think million benefits tax. were think to to If And relates not we and most which I compared an we've maybe to that's is taken you tax because the bulk first of for into of around last are look base expecting margin $XX I the every I I've items that's year quarter. one million. benefits the year. the restricted specifically, quarter at excess in XXXX year, first item below in here of year, to stock excess think $XX full caught And point something as

Jeff Silber

I or going the out too of very uncertainty the to That's are great. helpful. And way know could the else business some bit impact it's And presidential terms few earlier in that anything of environment know, I into there either the Okay, some the over potential But about years? negatively political that a of your course Thanks. next talked of positively proposals from election. you early little the call.

Ray McDaniel

are suggestions. really that govern, or on positions business most any attention might to saying We to about want as to friendly. policy what are have candidates were the by would how different But, taken if proposals would we or Yes, extent that like that. they the I any less to capital be paying elected. be business individual impacted some certainly, be comment market don't businesses candidates would, they

that's know I So, answer. tuned an stay answer, a open a of but really it's sort ended

Jeff Silber

Okay, fair so enough. much. Thanks

Operator

from Tong with come Your Sachs. next George will Goldman question

George Tong

morning. Alright, thanks. Good

relatively moderating, of You volumes risk what's among issuers? infrequent in XXXX your to softer coming a be high yield and that in off flat expect With particularly pricing year the strong net global debt in growth MIS, comes XXXX. issuance issuance in

Ray McDaniel

the a No, to that yield see going fact outlook, we're strong points investment getting looking in time, being refinance high risk issuers relationships as that to to are particularly, given interested at in issuers our I at be most don't to and looking with grade market. opportunistic

concern And at this so, pricing point. being expectations around realistic be a I don't our think that would softer

issuance. declines we some to but issuance anticipating, things relates would that I the to issuance, pricing say, some are of that relate does to of that sort, and extent than relates monitoring fees it some more to

a not in the and to we're absolute mind. from pricing just downturn keep that area volumes, so, in immune And

Rob Fauber

leadership. to I'd terms of started I just you thought of we've onto that's proposition out rating Climate other ESG. our very why that's issuer roll back a in and good customers, support gotten mean, we also which that, to keep see about, all supporting with the feedback investing add for The relevance a that what recently of We've relationship. about and portal into thing the business the is value

George Tong

helpful. it, very Got

to And have cost restructuring You savings between and initiatives your these expect cost what How drive by MA driven XXXX gross to improvement? MA? split $XX you you do do margin MIS million be expect further in savings in program.

Mark Kaye

goes that I Maybe, XXXX adjusted savings also, faster grow think, with will course of high to slightly in of margin lower basis limit from Sure. single keeping than enabling mind, year. MA rate is run obviously, rates, which naturally XXX And MIS program mid-single what's the that are million the which XXXX a points. the versus MA the And bit $XX here be growth operating XXXX, important is over margin over restructuring point expected digits little in our to emphasize that most make improvements, digits. here, the it does really

seen that I balance we charges I in think actions would took the between splits and around restructuring sort between There’s individuals particular strong last integration, which real mean, estate, actual think year as more there estate, of the ongoing differentiated action. segments. a was real way that's I between don't and George. between XXXX, two well even people-based The M&A from line as about efficiencies it, of

George Tong

Got it. Thank you.

Operator

next Huber Huber Your Partners. with question will come Research from Craig

Craig Huber

good that’s the is, get start release, I press want trying call thank I onetime in incentive out out first what the When Mark, your here the quarter. I'm million those could you your off to from $XX to in And fourth you. year? side. checking Yes, guys cost if items what quarter, compensation the the up the on quarter to cost was for in fourth and sense first results you you versus than guys October, the up of very thought quarters. be amount have would incentive coming pretty were it quarter. that at thought pretty first stage million a $XX thought would what you literally I comp be, comp a good had three probably reported at less the incentive the you in end well, of time, pretty last the would

first costs the my that much a end October? you were plus million very so versus up changed what That's question. thought what of So, $XX

Mark Kaye

me around quarter that Incentive million. $XX by year XXXX the numbers, for for full total fourth the compensation and providing and bit messaging was XXXX was of Sure. of them. And million a little let I'll start to $XXX the give

comparable relative million million. quarter fourth XXXX full was roughly the $XXX to he was and $XX year Just

the on at was quarter, roughly So, was a up look XX%, if numbers adjusted EPS I up and incentive revenue expenses, you which those vis-à-vis they which take compensation XX%. vis-à-vis total X%, for operating were up basis, quarter-by-quarter

took And exclude much had in fourth that driver of driver A the we And in third those we the the cost that was with quarter. given primary the in in additional very so was quarter. guidance if incentive two higher line we expected secondary really we're expenses drivers, severance than compensation fourth quarter. the

Craig Huber

that Mark, at extra I severance I think, It must press costs? the immaterial? was saw be in don't How much, release.

Mark Kaye

was XXXX. in million severance fourth Additional we that took $XX approximately cost of quarter the

Craig Huber

it quarter. be play how single number low the then obviously for costs year just the this you I believe, for guys think course? about in course the the the about for how of of as cost year that. cadence as the soon over think this as talked you Mark, of can year, whole talk should versus bit a had the over you including thank Okay, about this I digits, course year, you down you big fourth know sort you on But, Thank you. may out new the little the ramp up? And of cost, can acquisition of the

Mark Kaye

rent Maybe, the best expense place for to start is with here year.

expecting expense we're first ramp $XX million million of So the $XX to the guidance XXXX. of quarter somewhere between to fourth on

giving single restructuring through low Now, by because the range guidance XXXX this primarily expenses digit took the benefiting and is in hiring program. merit operating in XXXX, we are for are we in actions the increases

normalized thing, in we level XXXX. of And return note a I'll more compensation do expect to second to is incentive the

of is into guidance acquisitions are part So, back $XX million cost expense ramp. our per approximately to And we the give last that incorporating quarter. that reason I inorganic as that

low what is of really digit that that's RDC, year. driving example, part for for reason think I single the

Ray McDaniel

is not not And part the and a QX of closed reminder, expense just so as yet. RDC yet space, has it

be So, that ramp. part the of will

Craig Huber

Ray, you. And if quickly ask also could just I then

fourth fourth about XX%. was outperformance there's XX%, happened But your it's variability there? much can versus to what mean, third in you and lagging your were Other for you. main us other year highest comments your what to quarter. than Thank was, guys he not else that me you I the the fourth point not of main the competitor, structured related the It up quarter? the the ratings quarter the third in that finance of normal stuff. revenues one and of was second for revenues interesting Your year, the the competitor your quarter transaction were the largest was transaction up ratings

Ray McDaniel

I got it Craig. you've think

and finance, is the it fact disruption finance transactional attributable think revenues of I the bulk that structured are revenues.

Craig Huber

Okay, thank you.

Operator

The Shlomo Stifel. with question will Rosenbaum come next from

Shlomo Rosenbaum

looks just each for kind the Are a are in your are of I often does activity you according refi substitute. can over out expecting to some course converge places other. as just a through on of best to rates, Thank when at go But, of the they you least the interest you them year? year morning. course first if like play for have time that? Hi, at of with was just high asked, couple. month that, point the side, kind have questions good years. flip last It of I the XX my years. Most yield probably the a things issuance, you. seen is that probably we've on the loans know the in last worst like I the that mean, And XX loans see we the lower the the When that expectation kind comment then been of substitutes how

Ray McDaniel

I'll fixed environment in curve offer be with additional it let as a seeing rate rate the being preferred. we're like continue low and flat is, think Rob some to but, color yield expect would to the as we I

I the with seeing Rob some strength we're through what may But versus the so, additional that. high in year. to bonds expect loans, And yield have would on color continue

Rob Fauber

Not add. much to

we investor if maybe last and sentiment. a fund flows outflows fund We that also leverage a at And year loans gives Ray. year. solid of you right, that's look think sense I of had

weeks Ray fixed January, think towards high We few we've kind the for side have investor of the weeks seen yield year of sentiment, the start I several in a more flows inflows seen as said to instruments. rate shifting funding again,

Shlomo Rosenbaum

underlying the the what MA? Mark, in terms And there shaping this business think a some year-over-year growth in be of Okay. lot there? about to margins And commentary headroom should in we about of margin in the you given terms more seems how business be growth then longer-term expect of Is improving of in to of MA. is you give over terms talked within some that of opportunity, mix for of may how the want you

Ray McDaniel

bit. I'll Maybe, Yes. just start little a

there's of I bid it that that on this going may touched bit, standardized have more what's software typically of that driver implementation We're cloud much of good business, a traditional from subscribing I that's in on and delivered product, think the the that's a and think moving model a environment. a to in licensing where And an Mark you've is. on important shift on going historical, with means got product. services are to hosted ERS customers

interested seeing cases we're effective well. what it more is from because it's them, more for that, are many efficient is in for but cost So, in us customers they and as

continuing So, into on that XXXX. we're part to of you're think seeing I see trend it there. We will continue think And XXXX. in that's a what

Mark Kaye

share in certainly XX% benefit on my majority, debt to is underlying And There segments, management of and lower repurchase I performance XX% then The and little step range. and income and portfolio. Shlomo, midpoint through if I bit the through of share counts is a EPS start the think here of non-operating I MA driven our adjusted really either a supplemental MIS. the by across holistically that bit from call comments our of of back segments, to our focus the two it, growth maybe little program,

point to actions, And our and $X.XX I think of the activity that's that cycle invest also the the from an the business. the dilution we story, investment able to to not important absorbing expectations through in margin I around and But XXXX. able for ongoing here meet highlight M&A and only are of worth growth part but we're through wanted is,

Shlomo Rosenbaum

thank you. Okay,

Operator

Joseph Foresi from come will question with next Fitzgerald. Cantor The

Steven Chang

it have please provide I maybe somewhere and in the Hi, for between this should Joe. missed but on longer I is on a have break you a release, Steven color future? the level moving can some numbers some no gave numbers U.S. around specifically, missed revenue. know but before, might we on China Chang press it down those International expect broader numbers coming but you might forward, I on

Ray McDaniel

sure. Yes,

Sorry. Go ahead, Mark.

Mark Kaye

Sure.

MA, non-U.S. guidance revenue, it's a of the of we have terms removed across reasons. little mix of certainly different And of and in several So, that so between very I time. we're U.S. but because not XX-XX. U.S. around specific periods non-U.S. materially obviously mean, bit MIS

And And prefer helpful focus time. most the analysts First to has metrics is mix geographic noticed in field revenue an investors. and sell-side most we outlier that is stable we revenue fairly to guidance. the over on and in really remained those geographic often that also are providing used

our XX-K U.S. and actual mix in the Form revenue report to XX-Q. non-U.S. continue will We

it you to be get time. So, able and you very probably as will over there know, stable

Ray McDaniel

like international just And the percentage if you'd get MIS, for XX% U.S. were for XX% to split we XXXX,

then it international, XX% For were XX% XX% And the U.S. overall Moody's was we international Analytics XX% for corporation U.S.

Steven Chang

we any it factors of know from just baked maybe should about? you other one but at But looking Okay, I'm the That's chunk are has in this coming one. cost that you. business, XXX RDC. just XX quick MA margin the a probably good whole Thank to I great. the if into savings call, XX talked about helpful. I I been bps especially was throughout that wondering just answered there know know And range.

Mark Kaye

reemphasize the that amount think we've the like one I initiatives, of rates I'll which ESG, enabling is identified expense and one efficiencies growth of would the relative add, million will do KYC, then management also a And make as technologies. there team I'll some around - $XX fund point, I growth a XXXX include that China, segments probably are the of point point, add, and then difference. certainly

support So, to efficient margin, just we that support investments and relying a to ongoing in on past ensuring actions are business. being team as the the not but

Operator

Wells question Bill Fargo. will from with come Warmington next The

Bill Warmington

everyone. afternoon, Good

the space. a So, on KYC for you question

rate competition you there acquisition, And RDC have to there? Who's run you've in the about and now? need and with that do you've million $XXX $XXX got what the BvD really RDC take a Now you million combined market. share

Ray McDaniel

Yes, Rob.

Rob Fauber

Yes.

the So, of and the We offering the and a market. primary do in other market. in players us players this there's Refinitiv, good host Dun whole very LexisNexis, think that space, a this gives Bradstreet in

fit got that's solution for think be got. and earlier, customers. really about talked very, RDC I going to good very it's what we a we've between the has complementary And As what

it might set data to I train that's that mention a powered some customers. can they've in replicate that value very institutions able There's is, set going be efficiencies solutions to is, RDC. all AI going the of thing over to part to be are of other amount corporations with The because deliver is to models. used got those and hard the And effort on comply data to significant enormous at the real the KYC. these world an at manual spend And reason important AI financial and

going compelling for So, think AI we very to offering these are a solutions customers. be

Ray McDaniel

add spend market Rob to to $XXX that like that million And is is that I on of just that would see. opportunity we the referring top

goes expense market that a So, large firms $XXX million requirements. that is trying are base know-your-customer there very and for top there that then direct of to a on meet, is

Rob Fauber

there's a the talking vendor very is larger financial spend in institutions always much all about. Ray Yes, these that large, in-house at spend

Ray McDaniel

Dijk other RDCs one data these is, fit base the see of of we sets they nice terms customer United has how from very Bureau XX%, talked in in it's about Europe. about XX% are, I'd are, thing also, but its versus where add. which strength van geographic which coming is which States a here complementary We Just

Moody's the the global that businesses sales time functions the each is have under we firms. first and for these now reach So, these for a umbrella truly for of

Bill Warmington

I ESG. ask to then two who index providers the seeing providers, how is the you you're managers? Thank other question. the about want you've you within And specifically, for from are And to direct good follow-up, going ESG to second agencies an are given competition I data today my wanted color that. for us doing on some ask what and investment the guys the places, and rating one,

Rob Fauber

So, indices ESG and whole because providers, a data is the index they're right, build natural able very ratings. space the ESG them, for off to suite of of

banks, customer we business we're we said, I very in demand companies. base is index do seeing there. about but As large a don't have I that have what and institutions And talked an financial insurance

able be and it the monetize to going a we our to little it, of effectively than who competitors in able to ESG index very space. we're are differently the to commercializing monetize some content be think going are So,

Look, them and or think talked important that assessments. the data - a customers I this. going be think fuel there want as assessment. ratings is not of I very, to do call important. rating want for are But think insights the with it's all more these engage very need just that more we a be market, to going I to you to ESG about, kind to data And and somebody I of ultimately, It's that don't think will the become, tend the around to

sense. So, my that's

for be portfolio that, insights. feeding selection will investment there a screening I think and So, data real need also there but is a and need to managers for and be data all for going

Bill Warmington

you very much. Thank it. Got

Operator

Ladies and turn question-and-answer I gentlemen, now the call back over does that conclude or closing will our to remarks. additional for McDaniel session. Ray any

Ray McDaniel

to want everyone for just I Okay. thank joining.

Day, everyone hope. of will at with some again And, Thanks. speaking will our Investor spring. you see We we be I in the

Operator

XXXX fourth quarter full and Moody's This concludes year call. earnings

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

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

Moody's (MCO) 12 Feb 202019 Q4 Earnings call transcript