MCO - Earnings call transcript Q3 2021

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Operator

Good day, everyone, and welcome to the Moody's Corporation Third Quarter 2021 Earnings Conference Call. At this time, I would like to inform you that this conference is being recorded. [Operator Instructions]. I will now turn the call over to Shivani Kak, Head of Investor Relations. Please go ahead.

Shivani Kak

you. Thank thank results us for and XXXX. and third discuss full for XXXX quarter our you morning, to joining Moody's year Good revised outlook Shivani Relations. I'm of Head Kak, Investor released outlook for year quarter Moody's This the full results well our as XXXX. third morning, as of its XXXX for The earnings to a and accompany both are teleconference press our on release available website presentation this at ir.moodys.com. Moody's will lead conference call. Officer, and this Executive Chief President Rob Fauber, morning's Officer. on remarks Kaye, the call will morning Mark Financial prepared this Moody's be Chief making Also

towards the report on that and the on may ended to the the Reform During in also the call can meaning In risk discussed will other would harbor within your adjusted the at available safe like earnings in our of statements such a this the now will and all figures. I any the of mode. website referenced this which Please morning contain remarks XX-K Management's cause by the of this our over set are also actual safe Rob the adjusted or on call, contained with in Litigation media our presenting statement, I results the non-GAAP between factors our during out accordance point this XX, Analysis Today's the your listen-only the call for language, I forward-looking SEC's to that the we made factors be be Fauber. section Discussion of a Securities earnings Act to may materially differ filed and refer tables Private These, year call end also XXXX, release. on press harbor direct call Act, attention morning those forward-looking and attention the from reconciliation could to filings measures Form I for turn with be U.S. XXXX. to to release of the statements. members annual forth December SEC end in GAAP. found and company, important together which website.

Robert Fauber

outlook. in Shivani, financial due including customer billion results. Thanks, I'm today's $X.X our business, quarter well Mark grew revised your quarter as morning, of products by going robust operating demand strong prepared update Moody's XXXX the and XXXX in joining for further thanks then increased and quarter providing and Kaye And third Revenue our as call. a after delivered following XXXX. we'll on percent our performance take my to revenue the details XX% financial to remarks, the segments, our be range. for results good In to provide always, XXXX Moody's And general will on happy as commentary, third begin double-digit third questions. of everybody, both insights. mission-critical

For innovation through basis. trailing integrated examples strategy and spotlight MIS, few subscription-based MA of MA high-growth I'll We loans conditions revenue leveraged the a to and delivering opportunistic our structured which remain XX% market across Meanwhile, in M&A drive on risk investment for issuance. total and strong attractive growth a continue activity comprise our XX-month focused experienced refinancing assessment call. finance now in on markets, products, and later

low Moody's performance, As strong of XXXX revenue teens we've forecast and a guidance range. quarter our now grow result percent to our year third revised the full in

X% million. adjusted revenue income increased X%. quarter, rate. XX% operating annual diluted was the adjusted XX% Organic which, range rose growth and MIS narrowed the $XXX our EPS $XX.XX, to of up was to $XX.XX, and represents $XX.XX in third an raised from be guidance approximate the to the we've up In midpoint XX%. Additionally, at prior revenue revenue year MA of Moody's MA

Favorable our in higher flat to was growth invested $X.XX, additional floating default period, Adjusted serve and significantly led financials development a in was the of shortly. and provide issuance a interest terms and quarter EPS rate market capabilities investor number details supported Mark private some decade the expense and quarter, third appetite year amid cases. high-growth to the third diluted of and by very Leveraged in revenue debt higher on our we use product prior During better over issuance. both MIS rated order expectations. than rising and strongest as in strong, was will to conditions activity robust loan inflation revenue rates low equity for rate

tough As we comparable. the prior in anticipated moderated given supply our year investment-grade prior guidance,

average and remained still were historical debt. However, above XX-year MIS-rated the substantial for volumes

tight a back activity reverted Additionally, as as refinancing in Ongoing levels market seen and issuance CMBS after spreads, muted and including favorable drove and conditions, creation CLO CLO well issuance. XXXX, to new structured both new XXXX RMBS 'XX. finance

the trillion. trends the surge loan U.S. the approximately upcoming month, compound is by X%. uses leveraged views long-term in high issuance year, frequently growth and drivers, earlier left, reduction of M&A annual underpinning see medium-term support which and combined for growth. comment supported Service remains U.S. historical can an published in include U.S. M&A this quarter. continued X% and Investors The issuance. class growth refinancing the and activity quarter Based you rate in heightened maturities is Investment-grade the default European earlier our from X U.S. As research were years providing as over investment-grade have is on to above a X% weighted and the the for That's supply a GDP walls with Moody's created spreads forecast growth, credit tight significant nearly asset default on And by by refinancing a X% XX% on maturities, for fall in the attractive environment in issuers loans. leveraged growth of to on We slightly recent on chart activity annual forward solid forward This biggest while rate acquisitions the rates in despite below third issuers refunding opportunistic next to low year-end. refinancing the needs. ongoing proceeds $X.X used our pandemic disintermediation third towards increased

of mission-critical to and a Recurring annual north the driven trailing on I'll increased to a growth and suite. a the above to represent Recurring pace revenue the combination our ongoing MA's from its we recurring expand of Now versus demand of accuracy, that ownership and revenue revenue the let increased quarter. The requirements a percent by I in accounting similar XX% complying a And year. key revenue supported relationships differentiated and prior our enables finally, growth regulatory of XX me businesses modeling requirements are rates financial really sales banks our with Starting give as mid-XXs basis XX%. driver the applications. represents customer moving new further. to MA with mentioned of in compliance products within retention at to the on support and and Last market. existing the KYC counterparty for with Moody's credit of million ERS mid-XXs built managing operating described into for revenue by an offerings our strong revenue these and is on illustrates at one testament new partner right growth linkage percent a sector. banking This be a be total across due currently banking, customer with in few continue requirements. in structures. Moody's and And across start variety solutions you our as of the growth growth product within to range double-digit ERS insurance research improved earlier, that Recurring provide was and I to the by range. in of low $XXX a risk key the core a and how few the range data range business driving customers data portfolio the XX% trusted revenue underpinning rates summarized In to our everything cases nature us of in organic leverage And trailing now that and asset yields the across customers. and This strong quality important quarter, diligence also I in reputational providing continues strong which is functions, And growing And to the wide least transparency reporting percent on our beneficial feeds. value actuarial units. XX-month recurring support demand the use for our XX% illustrate grew trends of customer solutions. and Analytics. Each IFRS examples KYC business year, grew management to basis. on management a organic rates, of is XX-month some chart lending through

it's our our key fit. integrated closed life to And large excited empower integrated supplier due I know ESG we month, a company. leasing was Compliance monitor anti-bribery their P&C a automotive comply assessment to acquisition. revenues company tool on worldwide that manual diligence management a onboard MA and our across other the of for chose provided Recently, priorities. compliance, teams using days focused align database work to together which X and of combined with because by and and the RMS on primarily colleagues to integration Catalyst with potential great single They solution and from relied risk for and owners. We're our Orbis data. see of suppliers almost supplier to transportation and jointly laws to the sync thousands them automated source with new help to technology solution areas to tens interesting it activities and achieve We're have to processes monitor the And opportunities and to opportunity Moody's. Turning corruption and to platforms. suppliers, and our an on And clearly to very now and XX,XXX incremental onboard get of teams beneficial risk their And previously begun advance last, our have to to but opportunity on them targets. new upgrade spend high-quality risk RMS plans. solutions procedures. a They each drive looking an businesses, to financial assessment cultural Last we our a couple automate had welcome our

respective meetings is cross-selling And to encouraging. joint already dialogues say, customer begun I the to are have we've customers. to identify opportunities. start And our to conducting First

team, was serving development a they our integration to simple from product opportunities, insurance new identified When of new I integration. customer with segments. customers range RMS to and is Second for is new RMS MA's which opportunity an from recent third some and SaaS represents transition And platform, where revenue of uplift. their the new products benefit experience enhance to the wide analytics, will

fact, have across In and specifically for governments identifying corporates team climate working we opportunities cyber. a and on

So to has our of firms. and the of we a of our I work collaborating, understand global Beginning the is showcase a next the risks. with can credit and private using forward business, on clearly they few with to investors and impact Within credit. the to SaaS this covers together. customers' public across modernizing new And priorities want to That factors strategic companies to I scores RMS include so and out integrate we're cloud our needs. new module impact In financial our G we the efforts we're building looking of our examples the coverage tools company. understand launched award-winning models year, millions enhances institutions. on comprehensive furthering delivering our our strategy beginning we're universe to the leveraging improve as transition begun and included recently our customers our ESG step meet changing innovating credit impact S risk to climate, ratings scoring help in This highlighted that and on financial how customer firm. capabilities assessment help expanded rapidly technologies and experience. our E, MA, recently rated XX,XXX That and integrated At future and ESG and of physical

For consortia, And make their that commercial data our important serving suite the property sector. banks And we our CECL product. of our of expansion part real offerings peers decisions. our Data analytics help Alliance dashboards. first set of recently and cash our example, as an better estate of benchmark to themselves and flow released to this value integrating commercial And we're the enhances lenders enables against into estate commercial marks solutions real CreditLens of

made the years meaningfully physical comprehensive analytics our integrate Finally, into and customers value significant chain participants in solutions. world. risk. our We their exponential in BitSight, a will together, has analyze company. target. of our risk And cyberattacks commitment to our better understand how the COPXX potential part our ESG risk, embedded deliver that's we suite need significant climate ransomware help the enhance see And in of the transition to products, addition a a for manage they measure market and and brought supply the in achieve the offer announced businesses opportunities XXXX, and and the stability as and and we than credit threatened our in With their to and Moody's across ratings We actions understand to data hazards, developed offerings scores many measure are increase we reputation to us original participants evolving few and zero and climate a investment quarter. to quality to to and climate beginning portfolios. identify, to organization. to measure stakeholders climate the to across evident we company's to leader data, want to better this across importance help our help the sustainability, And And products of several also climate our And both of I cybersecurity We've space. XX the in the risk and operations considerations to of into net climate the days, market will across cyber corporate that world-class forward RMS commitment chains our is to risk risk translates tools market. way of exposure this and manage Moody's Within resilience. earlier insights analytics underscore

yet the all efforts sustainability very achieved Alliance discuss to underscore Zero, the distinction the on Additionally, these our crisis for our before greenhouse member recognition Financial major have behalf dedication over our another of to hard hand to to corporate from XXXX founding as of relevant we're I work Mark team, employees achieve entire climate address to I drive and products commitment to strong Glasgow great initiative. and world's their to largest for All executive zero the our Global of want And thank in achieve us of net change. And company, financials, as and a all a positive we're LEAD call quarter. committed emissions. to the services helping proud align Net gas Compact

Mark Kaye

leveraged the increased Thank you opportunistically for very MIS loans much, issuers quarter, and XX%, Rob. In and to on issuance. activity. XX% grew M&A third transactions. revenue issuance elevated in and demand increase funded as X% revenue leveraged Corporate Heightened and compared a debt CLO continued respectively, loan refinanced finance rated X%

to in insurance in and pivoted floating prior XX% the as Financial in XX%, by advantage Revenue and U.S. a public, compared rate issuance environment. from finance attractive Structured prior needs recovery their in decrease supported funding revenue issuers as strong infrastructure to of project up issuance. fulfilled was as observed the we bank investors well a institutions Additionally, Transaction growth to by issuance. up X% and investment-grade lighter infrequent rate finance compared largely the revenue XX% public issuers decline in record rose as activity declined bonds year spread as XX% periods. took debt. XX%, finance revenue was in levels supported period high-yield

to also was While had of the refinancing a supply. by primarily a surge quarter deals loan this leveraged activity, attributable level CLO driven high in new third

improved year year contribution margin Foundation. XXX in expansion, adjustment associated In impact underlying by MIS' than CMBS full and points legal with a overall basis our charitable benefited the higher adjusted RMBS results. a approximately offset accrual outlook, incentive more the bolstered and from compensation Moody's of prior formation operating addition, via further of The

Moving to MA.

or revenue driven and This basis. was retention quarter. revenue X% renewal an to customer than and mid-XXs solutions. our decline KYC Ongoing decrease revenue rose robust XX% for solutions RD&A XX% and well rate XX% X% or data in banking quarter ERS overall Third by XX% supported for X% a yield by feed revenue as analytics percent organic as led well organic rose research credit organically. an demand on further our increase as our more demand recurring was compliance This by data expected as the products Organic onetime revenue a in insurance grew in products. and in for offset revenue. drove

in of up the As percentage total a ERS underlying third months, MA's result comprised offset the towards completed Moody's of basis XX XX% margin contribution last via year revenue acquisitions RMS points The in benefited operating shift our associated Foundation. SaaS-based quarter, XXX from charitable solutions, XX nonrecurring costs from points period. adjusted the prior recurring expansion, the and more approximately by than revenue transaction strategic with

well interest based effects macroeconomic and markets Moody's different factors. many capital Turning company's are activity rates, the market. impact and currency debt guidance. These XXXX responses exchange conditions, on regarding operations outlook the in limited to by individuals and own as for full on market detailed in the of the reflects release. COVID-XX general the earnings governments, XXXX businesses regarding economic as year Moody's is liquidity not additional conditions, rates, assumptions pandemic; as geopolitical of to, assumptions the regulators, include, but well inflation, as and items personnel The outlook sectors foreign also capital

macro rate and year-end, with is will below rates the points. remain GDP X% unemployment U.S. X.X%, U.S. XXXX X.X% default basis high-yield below Our approximately by will The assumptions. the U.S. in fall below gradually by guidance increase will the rise, year-end. global XXX through and XXXX of remaining will X.X% spreads interest high-yield X% will rate in Benchmark range Euro rise full to to X.X%. area following of GDP underpinned year the range

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

Specifically, and of U.S. uncertainty results the materially our reflects forecast exchange and for $X.XX the rates from outlook. assumptions These subject are pound $X.XX of could for for XXXX to for balance differ year euro. the our British current the

updated several we increase expenses projected to XX%. XXXX Moody's in key We for now full for guidance percent maintained have grow approximately to expectation low metrics. year and revenue have our is our teens the range,

We EPS $XX.XX improved We an margin adjusted XX%. approximately guidance we such, As $XX.XX narrowed and discipline, to remain year billion flow ranges diluted will expanded that capital and ongoing $X.X and repurchases anticipate cash, to expense respectively. diluted to operating with between approximately Moody's revenue billion allocation. M&A forecast and forecast at cash be adjusted to $XX.XX, to the and have million, raised to $XX.XX conditions, outlook and remain $X.X other available market free ongoing opportunities and full share subject $XXX

For a our refer Table release. of please to guidance, our list earnings complete XX of

from the in and decline slightly our is year High-yield we full prior by up prior that classes. approximately assumes revenue for by Within XX% to single-digit approximately by low and forecast decrease. each approximately issuance Investment-grade prior increase in our operating assumption to XX%, grow now the Moving lower bond increase range leveraged issuance growth than percent to guidance of improvement full our year both issuance is asset structured will expected of range. outlook. forecast increase to a assumption issuance XXX%, XX% these issuance MIS' segments. from of finance XX%, percent an the teens high rated to MIS, loan

and above monitoring basis range is XXXX's for outperformance leverage implies to adjusted recent XX%, a result. expenses. line We're levels raising by margin are enable expansion to through to of operating top Additionally, to first-time operating year guidance continued incremental will XXX us revenue X,XXX guidance driven compared This annual MIS' which increasing full and also to generate points well-controlled approximately future margin is approximately our X,XXX. fees. we of significantly mandates This

For growth by strong subscription MA, revenue SaaS supported we rates mid-teens are continued projection of our growth the products. in and retention range, maintaining percent our the and

impact XX%. acquisition as I operating These earlier. are a the RMS the margin nonrecurring of metrics We to deferred guidance the noted include transaction-related of well the reaffirming approximately revenue also related haircut as adjusted expenses

the increase range, the percent by completed and is acquisitions in MA the the in months, single-digit XXX forecast anticipated margin to impact of points. high revenue XX prior expand basis operating adjusted Excluding to is approximately

our As of guidance mentioned year previously, expense growth full XX%. XXXX we reaffirming I are approximately

exchange transaction-related period, expenses were For well charitable growth rates. organic offset which operational recent increases compensation of costs Moody's hiring operating and costs Foundation expense acquisitions, the the stock-based XX% contribution salary of The was as ongoing with year $XX RMS, accruals, of X% approximately investments over such associated efficiency points approximately third via operating and The as and and cost quarter, as a million rose including as in attributable foreign remaining by percentage well comprised higher was XX prior to as partially incentive and movement initiatives.

million approximately into the geographical reinvest on climate, expansion. the mentioned and and These are areas KYC We as year, we've XXXX. are $XXX business well improvement compliance, investments in organic including track to back throughout the technology as concentrated in and ESG CRE

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

our raised pleased performance. third we're due guidance robust year to to several key metrics, primarily across have quarter First, full

Second, levels conditions to support refunding economic and continue recovery constructive and market activity. issuance

key with on make and customer Fourth, organic markets Third, cases. me success. our that, back climate across a ongoing solutions growing proportion range ESG recurring to for to them demand investments delivers of sustainable our wider with call stakeholders, accelerate along award-winning MA's finally, enhancement positions innovation strategy let better risk assessment our and use decisions. best-in-class high-growth product our turn retention And in And of suite, product the to Rob. and focus our high over for rates, long-term Moody's revenue integrated enabling

Robert Fauber

Operator? I pleased Thanks, take Mark. your Mark remarks our be This concludes prepared and and to would questions.

Operator

Instructions]. [Operator

with Manav from comes question Patnaik Barclays. first Our

Manav Patnaik

Analytics. in and revenue should terms could that contributed is Moody's RMS hoping quarter with was The the margin the just and first we out to us you help how much just model of basically? how on I question specifically impact

Robert Fauber

useful that because will I'm the can found and largest we'll be call, RMS, call. a kind down we're very of we we've into say I want everybody of together. then I going that RMS has the big And excited Moody's picture the vendor very think is companies prospects important drill do we while to you one days, for the less Good I get than in insurance to some combination the world. opportunities to to with the around good to numbers. think RMS of some to some focused owned And to RMS have a pillars. that's XX And start the on on X that new of that's Mark got us. integrate leading and dialogues really opening to key us what And we've that and thing for up made RMS really plan about

First is business, really including insurance go-to-market strategies in cross-sell. our

importantly space, RMS' combine We've a a is then, served capabilities XX% less road currently our stacks few. for the some core to and of to And total as commercial maps insurance real and cyber of cross-selling and includes to road got climate combined are map very and our name course, Second in insurance that corporate give tech than and Moody's opportunity, by across But opportunities of Moody's. a estate, integration. the well both customers as sync RMS. integrating sense you

lot So we there. we can there's a think do

life LifeRisks got me low-hanging relatively fruit Manav, we and on where of of a about life customers. had life cross-selling our we see essentially in think and actuarial platform that a And to product that insurance and we're RMS integration you examples, of solution. insurance. RMS, terms they our has that And insurance sales integrate sell focuses be X longevity something called mortality able the Let space. modeling effort think some couple insurance to into and in give into going to

insurers. hundred opportunity several a take to that's to us So great be going for that life to

solution life Another companies. in and integrating our into place Intelligence RMS' and modeling insurers serving P&C is platform for Risk that available capital asset that's

be new for So And there serve things at are other flavor a identified RMS' that the that was helping but we're that you about then the weather financial we facilities, on into the Build to it. potential change segments organizations RMS an a customer a leveraging investment Back and for about building new And think resilience, number more so going and that. portfolios and we to And governments. to corporates this to help capabilities across looking of in their gives will of I'm call, assess when us we've amount impacts talk is transaction. what and really start to the investor climate There's And sure well we of instance, bills. announced enormous their position climate lot with institutions with of going Better risks and on to certainly call infrastructure ways. talked really we

some ways, and the for properly of the things challenges our that kind buck. really is biggest just one the going in all to So of opportunities bang prioritizing deliver focused get are teams the on the biggest

much course, more So off a be and good we're you done, start, to to of we'll keep posted.

Mark Kaye

EPS previously really was I primary, X to in think the XXXX due adjusted as to adjusted Then we than forecast slightly August, them margins Manav, as implicit larger full we think items. about nonrecurring RMS' and impact year the about outlook, back

million. first around of expenses The transaction-related $XX was increased

of those operating underlying be the factors higher to British performance loss expected the deferred would If one purchase third hedge. EPS was the XXXX, in a a we're $XX on price year looking our I three with take And XXXX Second $XX in full impact revenue dilutive then the at million haircut outlook. pound expected together $X.XX roughly million.

give of if from out that to put So your will if adjusted to choose what idea models. that perspective, an you in you be needs you

Manav Patnaik

on though, And from standpoint, it. a maybe margin then Got just Okay. MIS.

or operating us just to the that this year. first quarter, be the similar still expense that's should not. you told I wanted of half the last think if I case an update

Mark Kaye

a the I'll more just a detail bit maybe spend on to little Yes, of margin. couple minutes Manav, give MIS

underlying rate year, about would to ago Think are seasonality nonrecurrence here up environment operating could financing, out about the the quarter absolute assuming year bit M&A from fourth favorable to for outlook quarters. So into earlier that a And approximately you the business I we versus think will XXX that that points we full revenue basis quarter we're fourth a that XX%. XXX and of the wanted the but that basis quarter that if quarter roughly let's of XXXX also lower be points some continued XX.X%. which And basis trends, fourth over are like severance. basis imply MIS of Of point really year XXX issuance performance. means item need saw it, margin around, margin, margin XXX XX%. fourth MIS is call from cetera, almost of at little approximately ongoing back you quarter et in looking adjusted those last points, expenses we around guiding coming one historical points result from a fourth also of XXXX

So XXXX's in line of year the XXXX with of year. seasonality, X/X to we're MIS last quarter revenue quarterly full in specifically the assuming XXXX

Operator

Our next Alex UBS. with Kramm comes from question

Alexander Kramm

the little of understand detailed Was already of think already but a really, year years than update and sort And given have been us any look of you clearly, I everybody's on as and did you ratings on really you fiscal of expectations is the strong. moved hoping focusing can't could that on ignore head November 'XX. on give update everybody that couple issuance of into last like kind year. it us yet, haven't bit your kind I an or given side next more we

more terms really, a fiscal But about lot higher. that budgeting think when process? So term the I as are you of of good. And into a the multiyear and near that walls puts year what you get perspective, being from looks in really little thinking 'XX, takes in you a your terms are comments appreciate refi

Robert Fauber

may you we be Alex, still And have the a so that's in call. super. member and I may appreciate congratulations understand the you dialing of into family, that order new

Alexander Kramm

Thank this. very appreciate I you much.

Robert Fauber

transcript actually I at going little going this like third call. the to I get I a probably record. a And looking quarter broken was last from bit year's question. sound realize knew back was I'm to I

over more very conducive very I while an you we like conditions And on we've are in how said XXXX, little question, that on going it kind last guide sitting me from robust into about next right, just XXXX right insight like and those. not issuance I'll So and into take tailwinds Alex, the bit official headwinds we're give to last, we're there it. But year, are now, ready call. right where we're years. than outlook. sense just you're the thinking the feels issuance give account have issuance And it a environment the now, a to both do of I think X We'll your into let very, now, noted our give you of some fundamentally, had of to you

M&A is an to think We've got So that, that assumption of pace always going particularly is that's LBO to sponsor-driven fact, And case in of because be And our We've the strong to low a we've have very be of business. going environment. default low equity a, amounts inflation there's And low that deploy. going certainly, assumption, rate got said right our that's there's on the a activity. in a private terms got important be default assume spreads. activity. for to And that of We've be continued of going is got economic be tailwinds, of money we that's and good rebound I the to tight supportive assumption we've transitory. in huge environment going funds will, now. just true continuation in

rates we And be will to grow little going That's rates a bit also may a little bit, financing dramatically I a an think then see than more So going that even financing. mix continued issue uptick would start as historically add that I of be we're sustainability-focused to of to that volume. although year, all-in guess up attractive. in next move

just Now it of does last loans. leveraged investment-grade. And is it obviously, year, comps. it year, terms the was This start with headwinds, in really

year. rate the environment. sustainability outlook think, to last for continue, is outlook. expect loans, rising the for I So noted, issuance leveraged important, Mark some are CLOs be there very I volumes and very said, to loans versus of And we leveraged like up to our be going ultimately in XXX% to turn drivers over leveraged M&A, good gradually in issuance loan

of few so issuance? patient. have in bit healthy balance act the would a also to they There's can liquidity sheets after be a a it got all investment-grade pretty lots be period this that's just, issuers is, like and years. of last I the is general, Alex, will year, And question follow. say, so of been market refinancing over last there digestion hard And

of you hope years of that's gives ahead. question, is I sense in be. They've the say, think we're about in thinking good last this bit so your a of So one can year. at are a issuers It X% a acknowledge as I'd And forward about last maturities. to I thing Alex, the wanted and still we shape But the say of this, about we wildcard. ahead, noted this but around X-year times that And I the versus why quarters how last COVID grown rate the a highlight you maturities. is

think. So for underpinning all issuance, us a very going of give that to is medium-term good we

Alexander Kramm

color Great talk and MA the ESG you quick Excellent. about I a climate And one on just here. side. know increasingly.

in is And your the competitive as grab where having win success I becoming because resonating of you a much are in products most? they or having us sales like doing what of as what you're of But actually and think and you're revenues. this actually few what you're still wins but right everybody where degree jump of give now, pretty early examples to kind obviously what field. trying terms actually terms crowded customers, can, kind can rate it's is a at to

relative most. So to doing the of where how terms winning curious competition, the in you're you're

Mark Kaye

for thanks much very here. the Alex, question

here. X dive market areas holistic coalescing is our as Let me really go success where specific right perspective, and of that bit to think we're I'll and do little competitive ahead of having around ESG the sort really is maybe Overall, what itself advantage of we in a themes. a and important

integration tools, the a you're of a two of you're workflows The with. and those more themes X products climate our and or about financial you investing who integration, analytics with highlight broader sort working could customer for to important that's commonization or second really standardization. data, to and you're and part sustainability And risk lending first and having who me understanding and as lead is that, really ESG And ESG, the with right? the of into consistency, is The that these around really need services. And deeper characteristics think examples your of and let question. to who of

where into want The screening. capabilities globally. sustainability integrated properties in customers to And the considerations first is on-demand space be our screen that to they scoring want CRE

really floods, we've we exposures assessments, hurricanes, can time. there think over and And risk other so banks stress and economic wholesale climate to into insurance into They're they're looking data integrated gaining clients. forward-looking hazards those valuable example is developed a wildfires for be scenario need their them portfolios. climate with They provides other property how our and about requirements. credit that meet and regulatory integrated second risk incredibly it And we're traction really testing across to to banking assessing solution modeling companies. and that's help significant A also

And data again, and we proposition, we are our and to own those work tools. the in-house maybe We're solutions climate really enhancing available of to integrate as advanced to model. data lending ultimately with then science customers alongside financial access data ours. a example, their platform And to some that data data so ESG They data third with want on And then sets. our new our value And integrate to other and third, to commingle customers that, helping for into including that competitive to data DataHub software using those their that's, made risk want our that. provide institutions. doing we've our factors enable our

Robert Fauber

about has I'll We've source that's competitive kind understand we're of of sales just one who in ESG to instance. able XXX for you example. the we that have. you we developed you're Score suppliers, Alex, of tens right now We've else that it's we build too. profile database Mark, Orbis where and right, field. And an that got advantage, think opportunity give do scores Nobody XXX on the thousands coverage over we for ESG be me leveraging of want organizations what that let companies. to got pipeline call think Predictor on have of a million crowded

example. one there's So

climate. Second,

we really be for going With are the RMS, a that. the of to modeling addition going And best and climate process we to of leverage think in some anywhere there's have capabilities lot of the of out on probably how just we the we're planet. that, figuring demand

and now to compete be able all of space. kind we think win the to addition company in of capabilities, what had their already going to So the across we're and in in we RMS layering and climate really

Operator

Markets. Ashish from We'll Sabadra take Capital question RBC our with next

Ashish Sabadra

KYC, accelerated demand ESG wondering is also and thanks growth the for I driving the flagging just wanted to on focus for how increased KYC. was I there.

a for times You've mentioned of any increased color there. third party, incremental couple demand about so more

Robert Fauber

question, Great Yes. Ashish.

So start KYC and just me with financial let crime compliance.

see, we're with total XX that. more data X.X can you these We've million ownership we've revenue feel very We robust Orbis, assets companies, growth good third billion organic quarter. database very And profiles. the GRID got XX% than demand. XXX links to As got then continuing have constant about foundational in our with million dollar and

said. of immediate business offering. just And use Mark business are can deliver talked a multiple understand to who goes doing this. is decisions them it's operational are And make about that back to And risks demand and cases what So and with it want for returns? really the Organizations beyond we've to comprehensive that how what requirements and driving the doing of all going going regulatory with, banks. they it's better faster beyond they're

we're really from our day. to That's get XX% the a reduction sense, to kind positives than And screens Xx important feedback of business, customers now a from so to an to that, to up million of Ashish, anecdotal can customers. more up processing with give you of faster operations That's we're we do KYC them. a our a scale screens our false give sense And in tools. using of they XXX in hearing you that

not And only on customer to needs. represent solutions. partners, So this And industry a confirmed commercial working what partners we us represent who some and attractive technology see expand obviously recently corporates least opportunities, unique which call, we think trends opportunities Across crime and focused to our continuing that innovation and we at industry-leading new as shape on financial market progressing product refine proposition expanded financial really building and value of and we're position. are but we globe, institutions, now into they give insights now co-create KYC KYC those that's really sales with range scores and XX, to have companies networks, we're of well-known We've like all part coming And XXXX. that, you'll of team reach. on are which I our things our the in compliance.

feel is on make And investing going inorganically very ESG organically. leading a very how what market. in question, is We're part keep to your position we've good. We're then integrating. the a investing sure going to got we to attractive keep So to touch last of

to I the understand, they're You think company this your secure to to with? now is content on about, a I And my more need call your seeing, of we're it this counterparty data sanctions them? know give as a know Does there view increasingly, said, of customer. that. we XXX-degree desire more of reputational this supplier. your know have do part they're beyond, a customer, as business connecting counterparty, same But whether on is sanctions risk? so And part Is from profile going your with are that to they who ESG your ESG to. of And integrating more space, understand it's kind them to Is list, know know want list? customers so want I a I and a start

Ashish Sabadra

wondering there. That's update my just China with could very incremental helpful what's was I and operations any follow-up, on color your you Maybe happening color. if provide any

Robert Fauber

Sure.

call everybody think our committed to we're in CCXI. on knows, investment I So the

those we domestic is know What comparability. relative successful XX% to investment up know more I what that we'll international transparency a incumbents. a markets. global are do need stake. the attract number to want. opened services Chinese companies. agency. into their the Chinese That's has It's to have We see leading rating they more how more companies and bond financial foreign market investors of want And domestic the But

markets. that order international X investors Ashish, you, give in think me investment we ways let into we to facilitate So are China's want bond delivering what

to we're first The something called China about is, CreditView. launch

And launch across to think We critical areas. going to it address expect X really in needs November. some that's we

of it's wide going very all, First to coverage. provide

will top some for both that scale very It's globally, comparison is on going going corporates. very then is which interactive X,XXX-plus allows scorecards. standardized the scores of a to global to statement something global because the pure it model and comparability. cover financials, Chinese that's ratings metrics important, credit in-depth important That's firms. kind model-rated And have and else across So provide platform transparency quality with and MIS-rated analysis financial implied and

helpful to be that's investors. to very going So international

We're a second China's for give China been given probably the has And regulatory a high-quality by demand last ESG events. there. We've be XXX The the credit got done China activity on of And Moody's I'd We're credit covering sense, the that actions A you insights say One our thing our our increasingly would to say and over Greater of from innovating that market local example active year-end, I of series. will is, is channel. We'll sectors, a terms really higher. never in event stress Moody's under some XX% working have WeChat. special China year. a across great into range banner. we're delivery up of Chinese

bringing of our to also kind to engagements the of thousands with into prospective global would engagement. X,XXX you doing Chinese And meetings. issuers then So and commercial a And I We're translations with give events a analysts there's drive levels, teams to Chinese of lot programs. we're commercial and sense meetings intermediates. and even, number of and over live call world our the activity including commercial our of we've issuers, a lot analytical between done a analytical We're China. it,

feel responsive what like focused wants on and very we the opportunity So are China the we've good market needs. market that to initiatives got some

Operator

Kaplan comes with next Stanley. Our from question Toni Morgan

Toni Kaplan

In that just not of CreditView, that more last it China up within sounds on the could you correctly. follow paid like, understanding you're I'm is wanted Rob. confirm, Actually, China made, it that I point deploying maybe model or just you to an investor

Robert Fauber

that's Toni, Yes. right.

called broad income special China-focused on just would as a is This that CreditView with fixed coverage a say, of have product flagship about. module I for investors. talked a We corporates, I a, Chinese

a customer international core yes, would model be investor subscription-based segment. primarily So at our targeted it

Toni Kaplan

Perfect.

Also, really, Okay. a you different some so topic. turning totally had to

nice the there. had quarters. organic A growth past for You've some double-digit in pieces of lot X within moving RD&A

how And drivers pace be these You've showing of to the years, was really excited BvD, by next that about on would Slide to going of X legacy most sort got When areas you for the XX just theme. you within order now. opportunity businesses. the rank RDC, think just X you're the the MA? but I similar investment next you've this about sort really of of side, done right opportunities you Anything it's early, innovation would have think and great. year on the all know year? on continued investment should we about investment the what and initiatives the helpful

Robert Fauber

I'll Toni, organic very about with your think and strong start want probably let of is to out start investment. we've in Yes. where But to that. me coming got growth think RD&A I chime some we Mark going then Yes, that's started. question as because

got deepening about by I research growth The and talking, existing also what and enhancements like to significant You're our We've flagship driving and growth CreditView our our strong obviously, investments proposition Toni, new some right. research things and platform. at KYC, there, that we're our about segment. our years. coming And that pricing that's to making talked obviously customers I data penetration opportunity that about making, XX% else 'XX. in But support And that something feeds. is the was number are in length. of third talk able at quarter and There's supported very included logos. adding me be We're retention, over some is a value and the of let

the We're and aggregating going upgrading can of give now our experience we're risk one Moody's RD&A and our CreditView going be integrated enable integrated and dual risk want to we're consume it. to that is credit how place. I capabilities of you a importantly, that very on flavor able users, to access, for hear to a servicing little risk term, to digital integrate, in going enable true to be across that, think And Moody's you of to to the going of insights analytics content all breadth materiality. where, that content more and climate a So and delivering really across ESG users bit be we've to be so developed consume, when entire they this customers assessment

there to So across good to you. there's you're great got Then places chart We've some shows a hand the there. very bubble of the thing, for are maybe that MA. and investments us Mark right, investing be last I'll is, number it

You've more doing $XXX got a of number in million than businesses revenue.

the and characteristics to, So and place climate I us to our attractive growth like then a back KYC CRE ERS, would ESG. is banking given and go things very invest insurance and for position then and within

Mark Kaye

that. around of if numbers Toni, to add I just a were couple

significant approximately by and looking we're million calendarization the to XXXX, between spent year just quarter and $XX Obviously, KYC we crime $XXX portion note of and and just because quarter. feel flyby obviously KYC. acquisitions the those $XX on to strategic this integration that's to a fourth somewhere invest with Acquire the And million. our that's make million ESG give third RDC, said, to and full from at $XX looking best-in-class climate. expense investments, as of the in a back financial about the CRE, approximately we're quarter, the ties For in Media. And million KYC, all Maybe just prevention. allocated Rob be a I And a would Cortera quick wanted here. you

Latin markets, spoken the of suite in of needs. domestic of and customer lending, streamlining around American our And meet market trafficking region-specific it's I of some that investing the some more a customers' great verification. insights workflow sufficiently products ESG, and talent, our really we on the in around specific On identity a we've have CRE and briefly, We investment think for about. local new alerts feedback then human monitoring. and lastly, holistic methodologies the are China

Operator

comes next Suisse. Credit with Our from Kevin McVeigh question

Kevin McVeigh

or little to the kind uptick a I rates? in I I rate Do offset revenue, kind context of bit in way. to have weakness. wanted if if to the as dynamics some that the the just in of you I that nice I'm rates finance prior maybe XX% a little corporate thoughts of back, right, what any rating we're 'XX, still any does the of peak? is Rob, to that as are there's obviously, But you you're finance a thoughts peak the to revisit structured guess, different mean, different, structured continue Xx 'XX to to uptick corporate yet finance look kind know I longer term, Mark within finance stack the but been of some structured go of ask your thinking was. it a question below 'XX. more how bit asking finance, at Or relative about 'XX offset

Robert Fauber

Kevin, it's Rob.

time near like something medium seem it But that, big comes of and at crisis. we're looked anything to when what be went asked is going proposals Let the I reality pre-global has And we that probably just, that XXXX, like about we the back me from not and have first a a very been the and some around talking term. things. market, take to if think doesn't come it to financial crack other the that's to at the will thing do is, GSEs to just we here back just like RMBS of that's piece there time, size the it in get guess this. mind looked

said, very we all But out right to XXX%. asset market. our confidence. That hard market, ABS, up consumer overall finance across tight U.S., in for vibrant just of structured that it's improving especially is, spreads today, see, CLOs the So the now you that replace classes. if structured pretty amount kind saw we Obviously, in of guidance, issuance markets look in

surprisingly You've CLOs. got pandemic and course, of been the has out CMBS, coming of which resilient

going So think see structured the growth in good absolute I we pre-financial think don't that we're soon. resume of but finance, it's anytime had I size to to kind going same crisis

Kevin McVeigh

just commentary makes a that? the terms with then of RMS climate, XXXX that syncing incremental you in it's like as are real anything given from million that way of kind still by That how or all your lot with seeing And comfortable are quick, conservative revenue through $XXX maybe of the to sense. proves working as of client incremental pacing It you base. of sounds you're the

Mark Kaye

RMS-related guiding XXXX. the to by comfortable rate that million medium-term the also our very of operating of just $XXX incremental towards are note margin guidance run adjusted We that continue that I'd reaffirming to revenue around MA we connected mid-XXs. are is

we feel So very reaffirming those comfortable of certainly, outlooks. sort

Robert Fauber

going want The in important Kevin, ahead get be to play an Biden plan, And climate ourselves, enormous and hard visibility we've being on don't role resilience, more I addressing of that obviously, together thinking about made. we're to I how RMS can today. but Moody's think investments got

that So will be something very we'll be on. focused

Kevin McVeigh

a real for opportunity it's for It future like sure. you, seems

Operator

with Our comes George Goldman Sachs. question Tong from next

George Tong

a into margins drill bit. to wanted I

expect margins to and you margin fourth MA attribution As you the performance, quarter? of in think the how about do MIS perform

Mark Kaye

holistically but little ago level. on bit minute little I'll let bit me a about and maybe talk at provided more talk a about George, let me a of after MIS, the MCO that. I color then MCO MA start

Our XXX is points is updated guidance the adjusted basis operating XX.X%. operating approximately and for higher result margin full of MCO margin adjusted year XXXX that XXXX XX%, than actual

this margin down component significant addition basis points. were growth underpinned expense previously. increase the by expansion XXX XXX into expansion. really to we the points XXX MCO expanding by to so is discipline. pieces, If And to better-than-expected And is an break basis guided XXX that revenue that would to we driven by by in that's points margin context, MCO around translate XXXX, into scalable in leverage For in the this to basis XXX a operating its versus

mid-XXs underlying expected locations, We want estate fourth are sort know then quarter those but basis increasing year. to MA again, guiding margin from fully just is full and driven to and savings deploying we've XXX to third the almost business to of points and means we're also acquisitions, procurement the this this the fourth MA I margin MCO investments of automation, flat in between activities the year. really resulting we're points that result about is and XX% MA medium-term and the able our out et including year, really solely The efficiencies XX%. activity And operating compression year's if from of and minute M&A more restructuring adjusted of and optimization, that that organic real costs. quarter in I reiterate, And this strategic points cetera. margin programs especially costs, a idea I MIS transaction-related is like the of XXX just and basis And spoken implemented sort accelerating And points XXX the those that the remains to investments we remind, between utilization margin is quarter really, XX.X%. round efficiencies by realize and I XXX efficiencies, attribution, of XXX percent. in XXXX MA On we against third approximately growth. primarily from for lower-cost that and savings increasing fourth in that recent organic implied quarter the of were because That's basis margin specifically, headwind the to fourth are from year. last looking guidance ago to of our be RMS basis XX of at around And of mix approximately the than approximately transaction-related year-over-year. mentioned that's down And last

George Tong

helpful. That's it. Got

of you're going On the from reinvestments $XXX Can which business cost what's of about about those that reinvestments the parts million of to been million into and savings topic you are making the done you're realizing. reinvestments, $XX talk year-to-date?

Mark Kaye

Absolutely.

the generate, those I KYC, able million to also of into that and climate. some then, we of And markets. to we're year. analytical modernizing efficiencies spoken wanted that's areas precise, cloud-based to So infrastructure, back CRE, we've presence of ESG primarily And approximately our around before. enhancing a is expanding cost products couple and to reinvest add, our examples And looking be through been I cited our this DataHub, earlier $XXX in about the the data and about platform. and on the really emerging that those business we've course, internal know technology to in also relates the the of call it

investments. using several are enhance organic areas there to So that we're

Robert Fauber

Yes.

give you me an Let example.

estate, the of instance, year, for real to commercial So obviously, Catylist, an made our build acquisition in coverage. at beginning the we out

for Those investing at of gives underwriting we speaking also building that to scheduled the and CRE we're launched our X and that's been CRE out lenders. kind launch month. investment a the for our third organically excited that. also prospective connected We of investors product. investment quarter, doing sales of of We're That targeted of customers. for this approach similarly, particular. we're thing and our the more out reduce out estate products a monitoring pipeline product customers out time customers. you that and and with portfolio have about And And CreditLens And our And are that we're automated there's commercial digitized coming example construction we're That's there. that coming really, to that's end going real At in core fund. delivers product an fund.

Operator

Our Nicholas from Blair. next William Andrew comes with question

Trevor Romeo

for Trevor This is actually Romeo Andrew. on

bit in touched of your remarks, analytics wondering take enables on you more you if advantage was investment a how of cybersecurity the opportunity. in investment BitSight, market bit your the this just maybe First, prepared kind but a talk just on that for about ratings thoughts could to I you that and and

Robert Fauber

welcome Trevor, call. to the

about, $XX than of as frequency industries. They're is had probably just I security risk. looked sectors, some broader physical We need So say or of the that be trillion. breaches we I at the more much to infrastructure. RMS. sectors we to had cyberattacks also and of cyber rated it's about all high anymore. debt data high And not medium consider in think range interesting This And a we affecting total that XX understand, in severity. done growing are work don't

problem, There is, probably concern issue here meet And able customer big. a that growing guess very to little implications, to material real I is be area is So ability cyber financial critical the numbers risk. quantify but with It's this I the markets a it's And virtually of are I'd every of opaque. what say it's is surprising. with. not

at think hasn't needed and seriously way investment the been in has that a established and we frankly, BitSight scale risk cybersecurity before. in done assessment So that's, our ratings standard in

working think that this that to approach. That's with translate to FICO in then to with And like looks think the analysis, inside-out might of looks a essentially combined something what And outside-in you doing a of venture transaction, that's management of So our and and more then score. the we got as approach. that similar an in-depth company credit Internet like had a kind our they've rating. they a joint what

first-mover were They use have in cases. got it's BitSight. So wide to range the together, comprehensive the cyber a a positioned this. really got insights their cyber financial risk going a risk. advantage They've us well are most to attracted of BitSight's to think in things we assessment that for to They've the there capability be first quantify X,XXX do high-growth and got over help use few They that the model. customers And to space. market, scalable, uniquely exposure the

get will of diligence, who underwriting workflows. integrate chain are we're and into demand insurance own doing got arms what everything around give into seeing, of risk that mean, national to sense. customers this due who've Trevor, companies managing and I M&A on. So for goes you our be security a want from cybersecurity corporates help this them And benchmarking, and their it's underwriting, vendors, and they're and able better and are the corporates list insurance increasing visibility variety that assessment a cyber what is the supply to to

interesting. think was KYC, I was talking So is And team big compliance cyber day. my conference. it a themes They the back just the about one ransomware financial was crime. and other big now of came from with

doing with. be to companies more an interest able, think to cyber want partner, idea of so into around where this visibility you've know your they're your I back we're the see to your, And they're have risk who going business this, to going of are to going counterparty, convergence got want to a increasing know and know who

into that a there assessment range insights them work and where have their things workflows. data risk to with of going So a to range integrate we identified we're of are sets

excited it. about So we're

Trevor Romeo

in for was super number just this, a maybe the if was what Mark. helpful. incentive third missed Okay. your I Great. That QX? And quarter quick follow-up for and the Apologize but comp expectation

Mark Kaye

for operating The an And the approximately $XXX incentive be to second our revenue $XX And year was around $XXX the million $XXX margin adjusted teens growth the third of and of for margin, outlook due million million year. result and now quarter and increase full between incentive percentage compensation improved really approximately that's low from respectively. forecast full expecting quarter million. we're compensation to XX%

Operator

next Research question comes from with Huber Our Craig Huber Partners.

Craig Huber

on you seems it's models acquisition, outside insurance huge My to sell out capabilities But the long climate first there, to about your term RMS an back industry. the the a question, of That's Rob, there? into touch data applicable one. if my just, how other can you first other the awful you risk here, industries lot This those insurance. areas on opportunity like talked

Robert Fauber

exactly Craig. right, Yes. That's

years climate They've and right, the is we're well. But as problem. kinds obviously risk, been think about weather you the of weather insurance RMS other no think supporting weather risk, I developed among risk, weather XX industry's events. in So realizing for extreme has risks industry all risk insurance related underwriting risk are it that models beyond just what physical to climate the change longer call

because what about loan, you the an can and collateral a sudden, inherits In company right? the of climate underwritten thoughtful a no a decides risk. climate going XX-year they're concerned imagine fact, you've life that an about insure bank, bank be longer the going risk. they to all industry then of insurance the they're And loan very you're during is insure So the insurance basis, to the on ongoing

understanding whole point, range think, impact interesting There's data give a a the I you Craig. You've of an got, weather. now I'll of broad knock-on impacts. of

up have like changes have smarter that of interruptions, are things something And losses like that realize concerns been $XXX something Over uninsured, those So been $X.X the get related supply climate disruptions, change. flowing consumer, organizations effectively have this insured billion last to to much been but right? of that trillion years, all organizations' they to chain about world weather XX waking around kinds risk, the retaining risk. through about companies is events, there especially want I P&Ls, there given of to business think

Better is is touch would we infrastructure with Back in say, the Build right? The what's lot is going this trying a resilience, a on going municipality. other investment and climate to say, and thing bills, I there on Craig, of can understand, be to So let's you're

climate resilience. expertise very zero investments. how the on what corporations, be relevant understand thinking able be decades RMS of combined and inform Seven just helping be going start going not And over other from kinds going Twenty investments there are financial but transition you You be Four the to those also we is risks trillions models, want think should adaptation our to governments, kind things, in of on what impact municipality? mitigation, that much building is change And carbon climate making they building address are And will where next it think in dollars about and the of your institutions we and to in about climate risk of to several think into resilience? to better with

Craig Huber

loan firms capital, That's to very out looks these given XX% issuance is I And balance other outlook here, private further the bank related like stuff. as great. just loan earlier, can flush us there, talk to to you as issuance, a in credit equity low cash recent how absolute you loan stuff. the sponsored My there. bit little outlook. the Rob, mean, of spreads bank and it sheets about outlook alluded years mean, I on to the with bank well, this XX% follow-up, particularly rates are and are just

Robert Fauber

outlook Craig, say, cite. term, loan good near I'd Yes. reasons you bank that looks for the the

of got lots powder dry the sponsors. You've from

spreads, low going low loans tight so looks leveraged low rates, default got and very the for on, M&A outlook and forecasted You've lots activity benchmark good. of rates default rates

to the our settles have said, on volumes question see is you underlying investment-grade we there yet, the are the next of year, be grow I continue levels? these of saw to going only a the this And drivers to of Or for think allow that we is, some are I view like to these like on really market answer digestion period like with question when call. will on off up but be dust mind we a year? give record will an loan something past XXX%. the going don't we the

Operator

comes question Silber Jeff next Markets. Our BMO Capital with from

Jeffrey Silber

hearing seeing. been the own just days than what different over few if bit your We've wondering could it about past I Is the pool, these lot shortage and you labor wage about any been a was little you're has talk a inflation. months? labor it

Robert Fauber

that's the Yes. few of hiring. our our we've to company an bit pace led States, I'd uptick every almost say Like probably turnover a same United picked historical but we're a things. the little basis, a also of in seeing on pressures in up

on has say really where is I So And I has about paid the pretty issues, young but to be but even important just some to connected I Moody's. at hear a about really getting am that rating at last, all can a want people work focus some can and the company since where We're and our that we to the see such mission. attract helping think addressing feel and people things financial going guess plays what our not other world that terms what an going adopted all a of And they got address think you are to that say also of the that over people pandemic. very assure that, in compensation at around we're we've workplace I you've is yes, of that a the am company. retaining And we crime and that mission-driven flexible combating change And important approach. the very they just role. but I people, doing purpose mean, I the and agency climate then really I also would talent, evolved trying retain all the I a things things in doing, factor purpose work? flexibility. But to and I exciting we're that and

advantage it. of given think our last our really employees competitive will be I our flexibility. And to forward. most going the And We've They've mode. employees opportunity empower And to see of possible of an that a advantage excited lots of employees think as have talent I take done frankly, over really, years job terms we're in of hybrid a flexibility. remotely. super in a earned working of to we attracting kind that X

Jeffrey Silber

the to All right. just question amortization know Mark. us completed just quick you now let numbers annualized That's And can asset that deal? is great. what the second, you intangible a the RMS Mark,

Mark Kaye

Specifically, let and the broader. on to then me start with move I'll RMS

I in be valuation pretax RMS. around around translates to intangible million, to year line to the purchase XX% $XXX of XXXX. maybe portfolio is would forward the for we're norms. million purchase are be I regular depreciation around price If amortization assets. $XX amortization. historical $XXX that intangible the at for across would other which $XX looking XXXX, remainder from That's going combined So of looking million combine is around expect holistically amortizable pretax and do with the year, and depreciation we of really that We full and really the around of be million, $XXX-ish very for those the still amortization price really this XXXX asset say much What allocation and for million reviewing

Operator

Our next JPMorgan. Andrew question comes with from Steinerman

Andrew Steinerman

year-over-year I revenues. between when year-over-year same could the just or that? high growth drivers fourth slide, to the to tell revenue with And for say teens revenue X% quarter. what growth quarter for growth want compare then When for share state implied you full the us the you Mark, Slide you issuance the year And is And year, and on look think X% us that, issuance about growth revenue to quarter. confirm implies 'XX? change MIS back the it's you for MIS MIS fourth single-digit just Andrew. low full fourth to revenues then for that I I the want you #XX. MIS Could the

Mark Kaye

for you thank Andrew, question. your

a the So outlook to I'd the And higher high low revenue single point, we maybe in the your of full are does teens MIS probably of that's guiding an teens. to that for end higher imply, sort low MIS year I'll year. MIS. to for digits of towards high revenue maybe growth of argue add single digit go and end

that's year, quarter. bit the of And negative and guidance. towards high imply fourth result in the On would the we mix issuance little you single fourth for as that really are digits seeing a the in mid-teens issuance quarter where into a other The growth side, are sort year-over-year that finance, of guiding asset issuance the itself than as the structured some driven see by And vis-a-vis guidance. well class of revenue. primarily CLO classes you dollar finance greater per specifically, translate within of asset XXX% doesn't or the necessarily structured

should explain So that to those sort you. of impacts

Operator

question And Owen next Lau our comes Oppenheimer. with from

Owen Lau

quick two questions. have I

those is, Mark, have you revenue please you this us then one update ESG contribution quarter? ESG revenue going And could on First forward? of expectation give changed an the any

Mark Kaye

basis Owen, and the million of an we ESG million additional revenue are on analytics of then stand-alone guide ESG MIS year revenue to through products into $XX million integration full a $X MA ESG solutions. $XX still our a to approximately and continuing and to of

year-to-date, revenue quarter growing itself, with For in the is very over line XX%. third well ESG expectations, much

meeting we this comfortable year. So about the for feel targets

Owen Lau

very tax That's another one it. And about Got the helpful. then rate.

year. does payment, like How lots are about about something noise and forward? incremental Moody's think that? next the corporate tax tax would And conversation there make cash rate think if any, the going you tax I of rate

Mark Kaye

Owen, thanks for the question here.

So let is your a me back step a at question moment. just area for holistically fluid the minute tax address very and given

be premature impacts. potential to may about speculate it so And somewhat

that really said, are actively list we that areas tax X our watch are there monitoring. with on So primary

corporate, administration's potential Moody's tax proposal a tax the is this rates and FDII GILTI the rates. the little revisions impact First, from is probably effective one to and go-forward bit implied to obvious, or the the Biden

on Back see framework, the likely And legislative maybe as corporate corporations less XX% items a potentially likely. seen more However, this a to those we're corporate on Better tax as surcharge large the instead, minimum of morning on stock based well are looking X% releases Build buybacks. that we've possibly

evolving quickly around rate up. would things quite end depending in of effective change magnitude impact X% to are XXXX a adjusted order So where a to the It's on here. actually we rough EPS. correspond $X.XX tax the A

pillars corporate that's we're of is The and tax global X to the tax really finally services #X clearly and that a integral and and around transparency the ESG. digital then and obviously impacts OECD, tax governance, changes transfer second relates and at minimum part one pricing. that third of to then a the looking element on And

recently For Institute. the Reporting example, issued by standards this on the Global

full a We full tax year XXXX. year effective and between to are rate XX.X% for XX.X% guiding

well so And that or just tax. corporate north proposed minimum is of the north XX%

so comfortable feel And where we are. we with

Operator

to And additional any turn the no like at or Rob remarks. I'd closing we to Fauber this further conference have time. for questions back

Robert Fauber

Okay.

So have and wrap will hosting It's more before to XXXX attend that up, another. Moody's that we City. be to great it opportunity hope XX, about going be one New or an learn just of Investor our advertisement in on business, in next you our we March way Day many a York to

thank We year. you that, with to with the again speaking you call. Take look in for joining So today's new forward care.

Operator

Quarter Moody's concludes This Third XXXX Call. Earnings

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

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

Moody's (MCO) 28 Oct 212021 Q3 Earnings call transcript