Moody's (MCO) 26 Jul 222022 Q2 Earnings call transcript

Company Profile

Participants

Shivani Kak	Head, Investor Relations
Robert Fauber	President and CEO
Mark Kaye	Chief Financial Officer
George Tong	Goldman Sachs
Kevin McVeigh	Credit Suisse
Toni Kaplan	Morgan Stanley
Ashish Sabadra	RBC Capital Markets
Alex Kramm	UBS
Andrew Steinerman	JPMorgan
Andrew Nicholas	William Blair
Faiza Alwy	Deutsche Bank
Jeffrey Silber	BMO Capital Markets
Craig Huber	Huber Research Partners
Owen Sum Lau	Oppenheimer
Russell Quelch	Redburn
Jeffrey Meuler	Robert W. Baird
Shlomo Rosenbaum	Stifel

Call transcript

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Operator

Good day, everyone, and welcome to the Moody's Corporation Second Quarter 2022 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 a question-and-answer session following the presentation. 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 second discuss full for 'XX quarter our you afternoon, to joining Moody's year Good revised outlook Shivani Relations. I'm of Head Kak, Investor released revised outlook full quarter Moody's This the for results well our as year second morning, as of its XXXX XXXX. for this at earnings ir.moodys.com. accompany presentation press available both a and are The on release to teleconference our website

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

external this This into our published substantial presentation that enhanced release, provide earnings in we stakeholders, IR format for we to our materials our along our from on response the we and to our business. quarter. insights feedback I'm announce morning, pleased believe that supplementary with materials call changed earnings updated we begin, our Before website, have our of

such, Mark we going Rob of turn now your overview results presentation. the Chief call to answer Fauber, will over call, outlook, during will brief As our a Kaye, Executive and the Financial Fauber. Chief usual be President will will through he Officer, Moody's not joined after Moody's by provide Rob I Instead, be which Officer, and questions. our

Robert Fauber

to Shivani. brief call. keep I'm that been very opening questions. Hello, everyone And to remarks And mentioned, so as Thanks, you many morning for the on thanks busy and that of get straight my call. to today's a your can for I appreciate we going it's joining Shivani

begin results. then let want our key few continued So I strength the me outlook our a business. with to relevance of And few and takeaways and minutes about a our on spend

rated And way business in ratings the our global record MIS in as and as decline as in impacted that down adjusted foreign cities geopolitical let that So was significantly the put significantly when cyclical this inflation, quarter. transaction XX% period approximately MIS year MA the Moody's weakness revenue activity said risk year. from comparisons operating XX% of global exchange, down finance performance per markets the tale unfavorable mix to XXXX high overall, we've markets. things, unsettled XX%, period the previously, by impact the which And providing few for MIS challenging rates, by declined in by by markets volatile and to second we're quarter. million. And nicely. very be interest as a translated earnings the was was issuance perspective, year-on-year business the total business prior revenue negative our a leverage prior was X really, the well would our and -- the global impacted disruption conditions grow rising this And to revenue as negative quarter. of in perspectives continued the with conditions, leading given declined was start driven ongoing recurring continue, this share our and $X.XX. really in in me that our integrated reinforcing leveraged slowdown quarter for to capital by reflects a revenue in customers. by on balanced for to the due generated issuance And in the debt XX% And $XXX XX% diluted revenue, MIS, in of

delivered Now that risk, that demand quarter. manage which, the navigate revenue demand acquisitions, other of growth for on growth products, identify And percentage of And our MA FX hand, was and X fueled that in help the the from growth by contributions SaaS-based revenue impacted suite our prior with customer due steady to negatively and uncertainty in market along measure and solutions subscription robust. remained and MA year points XX%.

this a recall in this And increase revenue growth. In our for good quarter, product organic to serve indicator by X%, we our by further strong supported year-end. and MA, earlier annualized introduced that grew sales growth the ways double execution. in and you'll the ARR expect our believe customers investments force digits development we year, low Now recurring growth by we this both of which sales and or that's and by an we broaden our ongoing metric to ARR that's future

reflect comments to guidance that. outlook market the in I'd to our like a that that of our make will updated anticipate year, about to a have before questions you will and persist few about Now we remainder few in minutes. of the I we've we get the expectations And disruption many And current for Q&A. the expect it our

year for if Now our from assumptions actual may the outlook. underlying our revised from differ obviously, our conditions differ guidance, the results

XXs MIS, for expect range. percent to XX% revenue full for issuance the decrease the decline and approximately year we low in year XXXX to Now

been unusual Now X.X the I to wider acknowledge the it that market, interval is the last was. to years with the than least, all around the probably have so confidence our uncertainty say in have outlook

for outlook unchanged. MA business Our remains

However, outlook due the slightly impact percent and to were range. U.S. of euro the pound against the the growth weakening mid-teens MA's dollar revenue British reducing to

we range in $X.XX our guidance of the per Incorporated projected is now Moody's adjusted the share reduced the decline of forecast earnings high foreign into adapt optimization a outlook the initiatives, range now broader taking $X.XX. realities, new Program year revenue exchange estate XXXX new talent and full expense into account, management. cost includes it revenue workplace Now and are that approach to operational in that's to and a percent MIS This global single-digit hubs. the part to be restructuring and efficiency and program, real Restructuring utilization us accelerates number ongoing lower-cost impact of of further Geolocation and helps and our of increased to to

sales support to with program employee million in $XX retention. ongoing and through this charges expect back like into business including We to to we savings to the and savings $XX XXXX, aggregate generate redeploy deployment organic investments, up these things partially plan million in million $XX to annualized

into open a it questions, before perspective few for to try all let Now I this up minutes. put me to

a of markets period are turbulence. cyclical clearly issuance in debt Now

the historical drivers to shared last intact. you Global and remain of each GDP continue, we business taking role debt in albeit However, are U.S. we growth some XX as relatively in the remains adjust environment. a the rate. basis, recent rates capital we spreads line strong. has on issuance and that believe volume unchanged. in And refinancing believe debt issuance that firmly the that years, of as the expect a needs is outstanding this we interest expected in higher averages increases. and economic view, slides growth year to with for saw at lower fueling fundamental rate And activity remain grown resume medium-term despite Corporate financing their fundamental to a markets a the of morning, And corporate

a period ratings, market agency providing ensure research And realizing our of experience and resilient of ensuring in investor remains and of and product is the with world-class issuers market turbulence, relevance are going demand benefits acquisitions. what quality, So the to strong in insights and choice, business Moody's consecutive almost -- we're this that and XX remains quarters MA a development sales focus rating continue pull. ARR our accelerating timeliness this during that MIS. we're for our on that of we growth, all reinforce control investments our of can organic recent the to and to And growth.

RDC, set on meet it's and for met with we we're fact, RMS. acquisitions or In days, have of targets and targets for track we our ahead BvD early are that our to of though

see Now our stepping at We Moody's picture the big assessment back strong customers, moment. that looking times, unmatched. and our especially demand the provides a for in value And for integrated offerings. uncertain these to remains again risk just

and investing of the want and they lastly, continued the and all And our their products participants not our I possible people, for to provide of thank this insights to efforts customers be across the unlock would business, innovating of and work the we're decode opportunities. need So to market and all them hard that with without tremendous risks and dedication.

prepared So remarks. that my concludes

pleased your questions. be So Mark to and would I Operator? take

Operator

will today from George question with [Operator Instructions] our Tong Sachs. come And first Goldman

George Tong

format I the the earnings new really welcome for call.

does performance assuming XXXX, year like, several And into should on seasonality what the conservatism volume materials. in How first based about is the your over that performance XQ months? that it remainder think declined over supplemental in volumes issuance? we You're for of to assume issuance baked the issuance much compared looks XX%, guidance? How

Robert Fauber

feedback. the Yes, George, thanks for

questions So I outlook call. this suspect a there'll be issuance on few and on

go. to So I'm big George, try let year's perspective. to then this trying view, get by year and issuance put will your of about to sort year-to-date of to take me start, kind kind I But into of some historical picture to going a question

rates. X right understand there the what I are crisis, of is increases I pace the all, the markets uncertainty a is historically low X, impacting in what tightening the inevitable to And at monetary now. caused the the And that a and trajectory time interest inflation. of lot of not has period we versus the after big but shocks And first X, we've got that aggressively contributed I was all First of rate further to both energy that's of uncertainty Fed second led think now increases inflation, both are same slow to regards well addressing and the a global and of around think kind it's confidence hoping in the prices the think, be and and general. of just in that's obviously Russian-Ukraine for market rate severity a But and the eroded, duration is the the that of also shock spike steady period we've got understood trajectory would tightening. a had assumed and during

not and dealing supply are of -- the to and impacts still COVID-XX with knock-on So mention, chain we disruptions.

a all trying to living that that's tremendous shocks of that volatility through their investors we're as So are these markets the lot complexity is implications. And causing complexity. in and all navigate of interdependent

me on in XXXX exactly almost years Now for the decade, outlook this going let of issuance is annual put on, all issuance pandemic our last With XXXX. the something trillion of over average and top like that $X.X the of perspective. of this excluding year

be down issuance was when comparing year. XXXX, think going a you functioning normal But to that about yes, is quite to it So significantly.

George Tong

margins previously given views in have your flexibility you've Great. targets MIS how medium-term expenses? MIS follow-up, MIS margins the much low and medium-term And are latest in XXs. you for do managing a on What as

Mark Kaye

And medium- the view intact. remain current by several disruption informed long-term and fundamentals again, rather MIS's in to in that that's, on George, data view than And observations. our based structural issuance points our is market nature. cyclical is business

past stably risk continuing technology MIS, initiatives areas. expense to base. the ESG capabilities strong that's there has the as needs our growth For value price issuance to into our are stabilize future, markets, decades. transactional low The to customers that, and through several enablement, I'd in the compelling data that margin that averages, of expense strategic in historical effectively and that include themselves climate, are adjusted feel evaluate low as revenue that base while cycle to support confident refinancing target interest evolving is Furthermore, regions expansion example, stock well XX% we the carefully analytical in operating XXs for grown about close strengthening buttress over going note we also with our that and the growth for to medium-term we burden still credit and to corporates. reinvesting low Therefore, of new And range. range. are remains normalizes and MIS say as the the expect I'd spreads will

Operator

will Suisse. question from next Out McVeigh Credit with come Kevin

Kevin McVeigh

seems sentiment supply investors refinances disclosure just frame frame Fed Thanks issuance, increase -- or point, issuance? of on funds you so versus the reengaged. hard my And I know echo think up your the much. more following way I reengaged helpful. that new the not we're again, ultimately demand the just just where more like trigger it But kind Ukraine? dynamics the on the out trillion at incremental some I'll going issuance XX-year visibility maybe any it's talk is $X.X within to And just at out 'XX, could on whether guess that's a as because context the very you about you does gets of that? to And the XXXX. beyond Is to around of gets know to and average. I think the the question, the not that or it end what month hover but

Robert Fauber

this maybe the But developing let kind to to half like of activity kind for the Kevin, of we're the balance assume our bit going so the largely effectively outlook know. addresses towards that rest we Look, in about rolled have the let forward what question. taken talk effectively we've effectively that Yes, little if weighted kind feel see for and me and year. first a that this I upsides your it's year. We've We've of of seen the downside. downsides and think the outlook, market the that's the of conditions and in year of me

get maybe So could you're market the what started. asking kind of

also aggressive keys of And the one they of is recession. Fed into the to control, back this we towards If year get inflation. end with of the one think think from XXXX. that rate I issues commodity we're the of or supply of would some very around at issue whether that just going on economic I some think continue because Russia reinforce and you some difficult for the there, market point be issuers ease Certainly, mentioned to is whether resolution but the to I pull growth is would a positive. volatile And important the into that prices, which can and address more there's confidence, Ukraine. under chain sort of that mean, I it's confidence look think, tip I markets. possibility keys into we and hikes that very inflation

see in we that equity markets volatility into the the translates So in in issuing volatility markets. debt

so, some of stability. period And

So think, things, in resolving helpful. be certainty that's of of some kind I quite the will these why

right? of a spreads headwind. converse, terms that's defaults that see a in the would headwinds, it's But scenario, up In worth be we'd to it's and bit likely when little of a tick start recession mentioning widen,

So of keeping eye we're that. really -- on keeping kind an

Kevin McVeigh

It just the in expense maybe intact like Or up And to seems Is then the of adjustments a in dislocation to you're the helpful. confidence real of the kind revenue. of investments some business? against offers? advantage market there the of quick. currently take the is opportunity of that that follow super some That's function just keeping

Mark Kaye

through we of the being execute to objectives. as balance And we're invest and going are in substantial against providing that to that our the though we're ago, we achieve integrated insurance. very short-term and investment in Kevin, as The KYC on opportunities are set That cycle a cyclical those cost nature. that to is evaluate Rob perspectives itself to our on our and much, plan us view efficiencies large generate even our market support markets revenue needed to to underpinning expansion, expanding, mentioned margin compliance, support moment really continuing and going help growth activities banking therefore, as strategy means opportunity risk. very conditions global future and and ultimately we're margins medium-term

we for our Restructuring of of like can back pandemic announced that's which XXXX, some this capacity that $XX that areas also -- performed morning. sales prioritize to $XXX year from balanced Geolocation our an So derived successfully new remotely. organically we learned the and remain product business that XXXX committed Program customer-facing the we have cost to employees, distribution be of development, as we costs to travel compared as And course, since be into and efficiencies, We've the beginning million we're this X going in many against while well invest naturally. T&E as activities the million rise And example, to to prior may additional going needed. years, are

expense We the which to have compensation as are based on obviously of the levers set the the occurring compared at to naturally targets beginning performance accruals, such as flex year. actual incentive we some going our

Operator

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

Toni Kaplan

Let's throw one in on MA.

like you lowered of because only FX. So it looked the but guide,

So the essentially the kept line the in ARR, it you're year. expecting to into of end but accelerate there,

Would I that, on data on challenged, to of that you bill clients expect outperform that wanting So well you is the point. actually a expect would becomes that, environment give Or risk driving positive the was continues somewhat more side? you because which cetera? just And just that et Maybe some that solutions, really color thought environment? do that. but positive what's can

Robert Fauber

of kind the for peeling there. thanks and Rob, it's Toni, back onion

results a the line I constant the in you So with on on basis. prior really dollar MA. right think our The got takeaway right are expectations message,

hit about the we've full MA, of bit significant mostly to Decision an And revenue for you're the that a this revenue is feel confident our of for dollar quarterly in we And for And by that X%. the a one year in and the I guide to and continue reason FX reduced to able FX. businesses seasonality we guide guidance, quarter, impact growth hit double-digit revenue incorporated revenue. look full really And on Solutions. organic of you solely As the here account be And that and constant year basis, introduced low we still banking it. insurance little ability we to The of recurring our are at results to guide points. headwind our grew growth confident mentioned, growth. impact base was within X relates seeing I to quarter-to-quarter key think that on of in in and and through achieving the was kind ARR ARR on think very the adjusted focus revenue the our importantly, percentage

Let existing capabilities you investments organize of a across into end to talked results. our give both have we're sales all as around be customers some acceleration in me are, year. parts build insight about of And believe really those we to able to showing driving deepen bit we sales and of realigned our invest through better We've little and customers, how we the our have what's fact, continuing of to out some to also organization global to bring our the our entire the logos. penetration broadened product suite in early that organization new that

expectations. that per pretty sales head as meaningfully as as productive up as pretty remained means before. have per activity even have rep has our And have that on a basis been And Our business result. our they consistent gross levels sales salespeople, we gone added with leading a

of some new good out getting the team. we're sales So production

capture greater our some year, that second continue The And good price make is compared the to sales price for really monitor that -- be we're good and with our last redesign sales products strong a pipeline we year. to going confidence platform, that we're us ARR web will of where enhances coming giving we and and thing, closely. right overhauling flagship for and credit content some CreditView, to in is ability had very, doing, capture due and the hit to to that quarters price. Toni, historical going we've functionality our first our around that to gives just and level. the obviously, enhancements I have of out our the of very come stuff and to is see web we're really continuing pipeline now feel. confidence, that's the thing our good research us And We're the in say would number value A to very proposition to half value. to that opportunity considerably through the And ability the you're is for look us example

Toni Kaplan

Mark, cash I the great. guide piece I sounds probably the midpoint. And lowered else XX% that free of of biggest the then that. anything terms prior as midpoint And free in know of terms cash use know that That there buyback, guide? follow-up, of MIS Perfect. outlook about you then want you call flow is at on flow for you versus But lower to also the in out lowered well. of capital sort

Mark Kaye

then little address take share the me a buyback which I'll let flow separately, question cash the guidance, Toni, comes and up free question and another bit perhaps later the on. repurchases

wanted to free terms net In reduction curtailed what million, free the $XXX cash down for flow to by XX%, primarily to revenue in the point, reflect the significantly the around year-to-date been lower that due flow global to and driven income we MIS of is your was issuance. on, that's of year, do cash guide

XXXX guidance at flow now and will also tax-related cash both our EPS cash adjusted diluted guidance addition, a XXX%, that to in which very of had reverse our capital free quarter, billion free later cash XX% that's this out income U.S. is range. full that to GAAP net with that's line $X.X low that's XXXX flow the the flow and does billion year, and outlook. we in revised much to working conversion year our assumes $X.X In our expected full historical midpoint means conversion of partially updated imply levels. reflected the free year refreshed ratio, midpoint And in decrease this headwind, of impact a The approximately

Operator

Sabadra And with our comes question Ashish RBC. from next

Ashish Sabadra

issuance around about is debt. of the that exiting the talk could versus rest refinancing down I the wondering trend the just new any for if And issuers. you And the issuance really on right from you could coming further pipeline percentage year of if new Just how about year? side. what the talk also, like thoughts wanted to issuance now drill for of could existing and was

Robert Fauber

talk million about $XXX little pretty revised quarter. to on first-time it's I'll slower last bit from. $XXX had you million highly on correlated And That's activity muted, come year. because mandates, from for with million these million that the little to And new We've $XXX the market, quarter. leverage mandate into issuance. our a then another our would where kind going we U.S. the mandates a first-time -- that's what's in me bit let what But first-time range I most to of market your on what's down down remained to say. going we in finance first-time color the and $XXX issuers of it revised currently are was give into the maybe Ashish, of market. we're seeing. But for issuers

We expect to the steady in of year. the the kind of see we activity like broader half, in first issuance the remain outlook pretty second our half levels that

to the September have that market to hit we on something be and we'll been just on have blackout that earnings And sidelines -- of half of there's you fact, there. like a see little but interesting, are post all through year, bones a think the coming month. give to summer, those some It's at We'll that in a not be mandates that I the put key over first little point. XXX market. the choose if will meat issuers post sitting signed first-time we the

And about signed bond. XXXX. we like more a give and takes the you year, months the doubled. was APAC, this XX% that was issuer from not something a an new first we've like that number that -- half the executed have X actually something XX% time That printed. mandates excluding time the far in of than has sense, and So actually that engagement To of frame typically it issued

and from what there's I of at to terms still day kind a now, in week would we The say get investment-grade market obviously, has do yield its This best sentiment even markets. something The tone generally So as been week, dominated but through in challenging light. moment, still week XX issuance week pretty of financial it may leveraged by change right positive blackouts very loans day. and a weeks. have has changes that to environment. is here. like of very the in issuance we had the institutions, kind is High

have deals hit a the few seen this We week. earlier high-yield market

firmed or like XX The I But finance. week. general, in, up something Spreads basis know, end of the last secondary market don't came market leveraged still so. points quiet towards in for pretty it's a

Mark Kaye

year year, dollar just that revenue. observed first average, will that patterns about that seen quarter. align Ashish, to would second to sort transaction And of prior cause the to more do Maybe, absolute traditionally and XX% half to the that with the X-type and in of issuance has transaction-based consistent we half revenue MIS return of expect patent prior of add we've remarks. pandemic, be what years. the total MIS of historical year in on the revenue bit On contributed the the We of the a a little full vis-a-vis over third to year's of the little to bit Rob's anticipate the to slightly margin lower we've X furthermore, the the half headwinds second

Ashish Sabadra

XX, you've expense provided color. the didn't the 'XX is helpful provide broken bridge. on on going Slide comp see how was expense decline where comps versus out as very think it question any you on was we incentive be This should to broken And out my then I just in in if second the bridge. was first color quarter. wondering about incentive 'XX? could I That's

Mark Kaye

Absolutely.

on compensation. maybe bridge incentive then me a expense I'll to spend around So the let direct and question minute get

for are If in the expense this restructuring full year full high accrued announced that morning. year So $XX Program of been Geolocation outlook XXXX-XXXX we reaffirming charge, guidance, excluded for the XXXX And that growth single-digit percent we the that includes growth. have in our percent expenses range. would mid-single-digit we part as operating operating Restructuring million expenses

you in cost provide full MIS primarily for of then XXXX, million, program given investments decline for growth incentive revenue that implied XX I so also see approximately specifically percentage XXXX then, from $XXX operating increase operating and XXXX, to in percent million, minus majority expense and course, range. of second flat. of mentioned. while in approximately we months, and net X still on incentive $XX a MA, foreign full so a efficiencies, percent and was approximately and last anticipated RMS. percentage related a operating and to then low high points million segment, of exchange then points, approximately mid-single-digit for we respectively. the of X your opportunities, strategic could would just lower including compensation guidance year MA question, growth investments the respectively. year-to-date And our And expense expect effectively be implies expense normally And the growth completed year-to-go future $XXX forecast related be in incentive accrual support around partial acquisitions X specific And then quarter percentage RMS, compensation the to to rates, segment by year percent single-digit And we X decline single-digit more the expect a And the don't approximately being growth movement comp, restructuring so offset outlook favorable ongoing The percentage investments point points to X points. growth year-to-go

Operator

will from Kramm with question our Alex And UBS. next come

Alex Kramm

MIS for second Just, of course, to a coming here. back

multiple You to you talked normalization expect have that occur. about the times

than down, I be out is obviously So guess pretty periods snapback should just year. quarters, to think the much XX% for confidence a specifically we couple of and we're just I we've wondering look having? that next lot you if asking more what that's and declines, issuance what prior looking of I'm a in again people a how seen big expect bit little happen next of

spreads, Obviously, rates be refinancing much with anemic. of So don't should having I'm the has a increasing kind of actually how year-to-date. in the lastly, higher higher years. we for just start wondering financing And walls then pretty opportunistic confidence couple really M&A down still been and Like is that.

get much couple that years So that if normalization you play just how actually could to out? year or for have a confidence take next it snapback we that wondering of

Robert Fauber

Alex, about of just XXXX. points triangulate below And then that what a kind exclude to XXXX outlook Yes. you And was a is over grade period this that to try give we're XX-year compare and of sense our of at and dealing just investment finance kind for and our we a to in to back of you things. couple I'm you perspectives over you and Again, issuance to ago. overall And below outlook this. that XX issue for XX% give kind of the years last -- with, It the when years XXXX. XXXX XX to last corporate current current few around was at XX% look was average. outlook XX-year issuance time our average that going data periods, the at maybe just looked

XX-year X, Looking at that X outlook leverage issuance finance, probably our percent above average. implies

high the high-yield is very yield So quiet. market --

and so of even we're fact, loans. is -- XXXX seeing component outlook kind overall important leveraged that an below our In to issuance of levels are

I medium-term to that thinking think triangulate as how feel because to medium-term tie about continue that outlook then to we good to about then on outlook. I'm our to going that

over kind period. you look either plus or growth, just at that takes grown you've GDP over been been fastest issuance issuance or the time. minus leveraged this over XX-year at growth And including it's structure obviously, loans something Obviously, And the overall, X% so that GDP mix in roughly with overall The heard a contributed So whether puts year. issuance that and issuance, growth or time on with fundamental, asset there of that fundamental and or any X% about period. of just me period have line to has period. X% talk class given to like favorable grew over

You on hear us it time. calls talk these about all the

building just If the a was outlook, we economic growth, is recurring blocks me GDP single translate about, and low So digits always we've talk in and probably let's to think I now that history term. low is revenue to I assumption single on that call And to issuance medium medium modest reasonable near digits, the think, go from term, about you talking first-time got growth like based mandates growth pricing, mix. kind growth, the it then about. of let which if

You disintermediation, than got I'd it's probably tailwind, assume headwind. rather either and -- benefit a a modest slight from ongoing as mix to a neutral

at recovery if the low So expansion, range. the low end we're And higher that end be range. and of if we're of to to in a we're mid-single-digit recessionary expect we at scenario, experiencing that probably

little put of that think into a So why we're a about but where first continue of to with market, coming be of we of kind kind we lot the And a I I you of we out it comfortable hopefully, gives see it here. that guidance. can bit from got medium-term Alex, you know questions when sense

Alex Kramm

No, times helpful. these no, that's appreciate And days. very uncertain I

aware of areas. come then. Just side. one demand on the Analytics as that is a to up I high-growth It or it maybe into lot pockets things cycles of selling all? be areas lengthening environment if that clearly because where really without just expanding potential maybe board? can at a sales any apologies should in are mission-critical seems Moody's maybe that But quick across has Or lot do strong risks, of And comes like a you're any it tougher the already areas products, a clients of

Robert Fauber

really. not Alex,

point there. retention rates, have nothing I We some could there's to continue to and strong very

Operator

Andrew Our next question with comes from JPMorgan. Steinerman

Andrew Steinerman

quarter you Solutions in in Decision our I mentioned Rob, the area. it product that organic about second of decelerated Decision growth revenue ask to specific wanted And because seasonality guess here were about X%. some year-over-year, I talking to Solutions. you substantially a

the us banking Decision that growth banking growth in of question benefit seasonality of So will quarter. imagine about course, side that if of Solutions? could second can quarter product you drove that product organic that third the you that And for kind revenue tell of deceleration just the other is,

Robert Fauber

Yes, Andrew.

kind Decision the in of of components is insurance what's we start when everybody in at core RMS. really reminding revenue insurance, our first by business about collectively by the of business look just me Let kind legacy Solutions. And largest the

other is finance smaller banking. structured few so businesses KYC. got Second and like we've is And third a on. Then

growth subsegment when look revenue thing particularly Solutions, Decision think the entire been So referred bit at to. a in ARR the good really there's to was because best seasonality, very we I across referring of that's the KYC. is And of what I had lumpiness year to half here little to I do the first

of kind some take just me let So key numbers. the of

constant XX% said, in organic X% revenue quarter, Andrew, dollar quarter. As last the you

number that's organic for and at key here grew the is XX% last as ARR However, Decision the same Solutions, quarter.

continues So on of altitude change and There's percent recurring no growing of in kind of there's building high flyer kind a of organic basis. sales kind there. same constant dollar the to revenue. mid-XXs of be KYC the book an the

about that But first thought the solutions. aspects So That's revenue where talk accounted And that from? was a banking our lumpiness given half of come for mix more a to we we and SaaS products we the that businesses have does recognition. working and suite lumpiness full Both on-prem for year this some of of year. an of still element of our still we're case guide. the insurance but portfolio heard you've to have of migrate about And as us on-prem introduce the true, SaaS.

just we in that RMS, lending, and I'm heard terms growth legacy usage you deliver functionality business lot It build of There, business. management, got that to some going primary seeing SaaS customers. more me track, our planning. very growth more allows risk we're That our as that. supports driving value X is real that nicely on banking say offerings. very of insurance, well. opportunity what in serve our for nice for second areas the from our drives a is We're commercial and usability highest and That finance our overall would insurance, out pricing out, banking. our insurance banks, then One growing us. continuing to touch on to really really estate. the part kind So a maybe and us proposition I of lot to call area customers and is a Andrew We've

commercial real been in You've heard lot about commercial with the estate estate Obviously, signed is that one commercial and co-develop largest banking very our we streamline bank going recently the a there. lending making to Solutions strategic And commercial as doing this data with together real That's lenders their estate revenue origination I'm tools and all the but us come and help is a real key at to our excited look in quarter, really to important banks very analytics takeaway estate the one and about We're our we've of here with bringing to ARR that more holistic solution. the partnership other of XX% Decision from kind for back country a had a real to talk investments to is of some Decision processes. quarter. in view loan cloud-based Solutions ARR we've quarter-to-quarter because same last volatility for the customers. example,

entire no Decision growth So to very Solutions seeing the we're portfolio. the across change good

Andrew Steinerman

Right. Rob, Decision revenues? third benefit Solutions there was to quarter Do a piece seasonality at for the the organic expect you end.

Robert Fauber

in see year in to the quarter we're similar at then what seen an is we've the end the what I acceleration fourth second likely the third quarter. to think of in pretty and quarter

Operator

come question next from Nicholas with will our Blair. And William Andrew

Andrew Nicholas

impact how deals? wondering well. presumably kind a impacts current but free the free growth into is as M&A thinking doing Obviously, some to end from your of First appetite. you that outlook heading about M&A repurchase environment how due or flow, on flow kind these perspective your one. one choppy cash decline, a the know of conditions I already expectations or least of Do the challenging just share economic conservatism for you're year lowered own the a at cash perhaps

Mark Kaye

turn of to component question. going spend talking minute Rob going to the I'm your repurchases, on M&A to over just I'm share a touch it then and about to

XXX% perhaps we are capital unchanged. most return stockholders billion our this And of midpoint approximately to planning flow at our free XXXX projected how remains So cash year, to or importantly, guidance range. the still of strategy planning our allocation approximately and $X.X

of although around an several spoke and economic conflict about to quarter conditions those but outlook. and significantly leverage we're we uncertainty in first the about And And levels. the factors, primarily you to are global can ultimately our the duration cyclical, weakened As of being have as conditions relative severity liquidity appreciate, as view well thoughtful and the Ukraine going heightened risks. disruption And these our we market inflationary we that do approach firepower be to very conservative when XXXX year capital we to in $X that billion. order more And and adopted to ensure to they maintain short-term we a equally slightly if balance share advantage philosophy repose for sheet a full arise. to conditions result, that have take And market strong able and financial be as guidance of lowered means flexibility. a of to we've the our financial important management preserving approximately with

Robert Fauber

me let And that. Yes. add to

on we So value call and really number portfolio let's over out of the and executing have acquisitions on real We've it, last, acquisitions done bolt-on that focused acquisitions. XX business months. of integrating been getting a of those the

development quarter. remember thinking are And our correction, against level and a our Valuations about the we this months included seller. thing not market. them down like that sharply." performance In we slides this acquisitions talking about in buyer's because X-, team I XX very fact, the acquisition for sellers XX-month of the duration and think, about. "Oh, has is cases ago, of initial multiples I'm X ran to our correction. X-, and interesting talking same a date, we're what's we about kind we got these the track well, to It's This periods in be so are I But so a when were at And on kind every years. is larger instinct to of the that. our of dislocation, review good corporate we market some performance feel of

between markets. So you buyers expectations see sellers and between to valuation in these tend disconnects some oftentimes

something, companies have sector. case got may in very the to capital not often eventually our that that's structures, you've that force do If leveraged them

thing we've And said, so plenty Mark is, I guess I the would last firepower. got say financial like of

our a and us that be our our what offerings view to and have clear from the need additive kinds want for very customers We things customers. would of of

things over we to last to say invested this market And we're lookout, but continue in so value the XX the I'd going on we're to out months. extract the XX disciplined the continue have that always of and in to be

Andrew Nicholas

of more bit with or strong wondering an is you that's from customers, the if follow-up, Great. success market Obviously, plan in expectations. execution acquisitions spend being in -- That's your one, a on on growth to note little type ahead a initial hear that terms point of of some time of that was you product for standpoint I Slide love outperforming Obviously, is of maybe business. a of standpoint on offering exactly a And your kind and could a what business there then but revenue the made late. within that if mid-XXs screening your there's Rob, million helpful. you resonating really XX, anything capabilities it. stamp $XXX would of to

Robert Fauber

Yes.

more the from us to business here parties or about workflow And also assess, effective. I scale And with really them talk we tools. this and what and that with heard ways, both warning customers individuals the limiting our is. is KYC by the know for and helping little to and and companies we a So monitor they again, do business that do to want it's we with. execute associated more at some goal think efficient those because some risks entities think help understanding third do is But be in that by that you've individuals about very with screen too I on move may simply, they the term it you, and I'm

virtually, I And also profile of to world mentioned at it working better every understand is Day, their their customers, and company -- around about we talked the the but so suppliers counterparties. other risk Investor

made It of that and offering in a leadership highly acquisitions, customers workflow also of much workflow. includes investments, and we KYC there's And this on their integrated allowed entity's last with to coverage and were expertise us acquisitions support KYC space, and ownership an includes a expect several back customers unmatched really in with quarter more to big has comprehensive and orchestration pretty active thought data So assembling begin here. companies. opportunity that to in configurable, the management we fourth year, our That and in intelligence element the automated Moody's. of and

pulling on. supplier going platform help leveraging more as even this so sets, your but we your way, these these a traditional broadly in I use to configurable workflow expertise now we're know know to all said, know have highly cases, the your of all customer together So data and only world-class leveraging with, counterparty, and not now the

it that lot a has But your question So about to RDC we and what a -- unlocking to of been. was said, had that basically that -- our RDC and important to be knew there's in fact, all original very component here, of back going opportunity we it.

Operator

question Faiza Deutsche with Bank. next from Our Alwy comes

Faiza Alwy

Yes.

So just on -- sort just outlook medium-term point first, to I put finer your of for wanted MIS. a

outlook, to off of now you should is as more I Like that hearing Or about your normalized was what think XXXX. at medium-term base am saying right to here? clarify, that you're respect misunderstanding is the sort about it levels. the what I'm just time when I we think of the I outlook? you put say think growth based I out XXXX to think issuance with that want from way And

Robert Fauber

Yes.

talked the that call so of right I on the is generally, some about for think I think that reasons far. we've

Mark Kaye

in to a stress of Rob's medium-term really years historically for quick we When period add our to add comment the strong just maybe followed model that just remark. and did economic I'd point And of making the XXXX. build set MIS in X our in stress outlook you're -- medium-term revenue XXXX as of particular, we the and setting into target issuance Maybe

Faiza Alwy

as follow-up again, And was do forward? anything I'm this at in macro that on of seen your a teens, confident you medium-term is the targets any you heard the that how say think in any those to business then Understood. the you business, resilient like which Are of -- outlook, general? component time. in haven't on curious, environment that going in slowing type just in business I Okay. MA you moment

Robert Fauber

this I very what a reason our for -- resilient about is think if think it's talked about It's you before. talked that We've again, we're bit navigate business. trite, They Yes. a need customers a the this and helping do expertise. expertise. And these uncertainty little we all periods customers They in need uncertainty, trying and who sound bit to got they of need you've may analytics. need data. are They it but about,

periods. really, they us in really so And those value

across whether that the or our are sure models of sanctioned for in KYC literally property periods and entities got heart mean business, our or I insurance insurers. In you've at got bad that good not business make portfolio. very that to As we've pricing we bad about what's what banks on think in periods going Those Think offerings, banking, you to out broaden continued -- about and are in off -- things risk are doing not our when I of are and it's finance talked stress. risk you're origination, of finance planning. loan turning we've periods. with management we're doing risk casualty and people,

have is we retention into stuff that serving Once -- embedded mission-critical sticky. rates just we so rates, high. are some customers. workflows very And you the retention from this the And we're workflows, very we're can for very these see

the of stress. periods to when tend why we're quite business even that's I confident of in feel So kind about market

Operator

will come with And our next question Manav from Patnaik Barclays.

Unidentified Analyst

is Good Manav. for afternoon, Brendan this on

you we more clear, like ask, be it to grow guidance going Just -- $X.X is up the average trillion the to of pandemic. happen? still could beyond pick want -- about I Or -- saying the a that about current when talked to that so back that want more about still bit apologize sounds refinancing is there's just a issuance near or you off when if new so you base rebound the XXXX? are exclude of and Or you're that? based thinking I for the to this your this walls is And on there think

Robert Fauber

looking have unusual call. on I to we think last investors a are, long have fact, And And those are. last back years of we think I issuance Good time just that were unusual. to years. mean, I X the lot in are analysts of X like series Brendan. at and the acknowledge years you

scenarios, basis. so a kind And of kind looking growth go-forward and patterns is reasonable running at of on are our what a we we're we as think historical

Unidentified Analyst

Any after current opportunities change And if to RMS couple months? on pretty ESG, pricey? there doing? in businesses, on how that, I that's Or and that the any then wanted the trends? Okay. of still just trends in just then in And your anything ask And space? last M&A it's

Robert Fauber

Yes.

Let me with RMS. start

starting past, get since that We're and almost number RMS So at encouraging some looking the are insurers we on and it's other to a fact, where new talked use particularly are securities in mapping co-creating really mentioned been We major -- risk do discussions starting There and nice having same of a in I've progress. transition some want of integrate. about automate the some we're announced making we're bit to very physical identified risk. their around I to all year, Last We're properties banks, with few products. reinsurers. banks some to across a and that we we're portfolios. the have product little data. acquisition, digitize around helping working think and in traction, the our And kind cases early suite. we're a CMBS in integrating I There of are areas for quarter,

and solutions. RMS's into Brendan. integrating data of lot ESG, mentioned interest A underwriting from our in scores insurers You ESG

So customer nice companies ESG We've -- have that pipeline. they very enhancements. also are there, nice understand very we underwriting we we're at broader wins the several also And their already better looking some got building as a product profile of they're can portfolio. and nice and

bought power remember, broader those climate up take needs. starting with business. some assessment help you to risk to solutions, range kind And We're to insurers of the models around our on-demand we're small before those RMS, around able to as pace of able of we climate of some and conversations we cross-selling them solutions. now a to also pick may climate data be and RMS had So a

and going RMS, on about company good So not of in just climate pretty in the also general, feeling across ESG. what's terms but in terms of

Mark Kaye

attributable growth expect there the modeling. be growth We the help to up still year, revenue Maybe sustainable obviously $XX a our low in expecting forecast reflecting market. just weakness that's percent X quantification And single in for by about direct XXXX, lower and this rate our to than XX% some the finance ESG to sales RMS's we digits. what the then the to increase And we're historical with and range bit of mid-single-digit points from further quick simply to related little previously that's million. just

Unidentified Analyst

And just anything on and M&A ESG?

Robert Fauber

It's get move they've if there. as acquisition the serving industry to at XX you climate -- RMS market. felt really a you time a Board do over that the important of X acquisition, customers, aren't a in that confident out of kind how of the scale And That been scale? because lot platform insurance at are for the think your you in opportunities analytics reason pretty to our we analytics. has how of you around look that very with that feel been fragmented get There the very, good and the global we And RMS do a discussion needle had was about you years.

So are that robust. you those know models

is So a not But been an I primarily We opportunities the our would organic I opportunity. probably investing guess there. to of lot say We've I ESG ground. organically. keep ears said, like scale out

Operator

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

Jeffrey Silber

was Program in more next not just quarter, can you're et one. why Restructuring I'm color the cetera? now, wondering little terms about calling, I'll just I of not details, last what if late. just why Geolocation it's why I but a not know get curious guess, I ask quarter, we bit only

Robert Fauber

footprint. our Geolocation million on focused -- optimizing to estate million or $XX morning really announced this up that was Program The existing $XX Restructuring real we

stockholder us where that at exist can second use future Thirdly, -- continue really the a fourth with that to means exit office begin skills related for future first opportunities ensuring of the be for space, and another and workplace see And charges our requisite of and of charge, locations well, that utilizing million the capital. our the is recorded through then expect of $XX quarter presented that I of Why use and workforce has opportunity. reflect resources we and now? the programs pretax of as half between efficient expenses. and progressing to lower-cost focus our prioritized mostly areas more $XX quarter us remain the the really are of and think XXXX, Moody's allocated And this talents restructuring leased in to year, restructuring in you which million to our $XX we pretax million to personnel financials. which in expected is firmly

future. long business balance term is employee you the finally, then central and in as between And $XX enhancements, be profitability we savings our what through going actions And take workplace towards million idea just supporting to to to severe that initiatives. in million these anticipate and annualized the actions, to an And downturn, able more here issuance expect over going majority modeled investments. For us protracted to that we've $XX if is could really in aside, the as aggressive create that's further case, strategic redeployed financial than term. our expenses margin further flexibility to is generating be then more the retention expansion include around the the the to short

Operator

Craig next Huber come Research And Partners. Huber question will with from our

Craig Huber

if was but currency it excluding in this, to months, second back organically, Decision up for here X% XX% Solutions I get could. up the the to quarter only wanted I X subsegment, Obviously, year-over-year.

I to You months the talked that banking in slowdown, about quarter the slower wasn't of that, an first the first issue trying guess. to in I changed out X the major if versus figure the I'm latest for account I quarter? growth guess But the reason heard being the what's you And piece for right, also there?

Robert Fauber

on-prem some, mix would of flag said, couple guess the I I a just and things. insurance as maybe of both Craig, Yes. have a to I SaaS solutions. and and banking back both

well revenue second recognition first of, aspect you timing so it, and some on in what going kind I'll and the had was contributed call as the And quarter. to in of that quarter

-- you through reason ability kind rec because ARR keep on-prem we rev have. kind we that product this of that the back the from that look kind it you get some to so to of gives X of of going that's kind suite of And issues still

Decision -- health it at think for same I'm as of Solutions, last And that business, was ARR of so ARR to back as the XX%, kind and underlying quarter. about I looking

Craig Huber

And my please. follow-up,

credit well markets. you years, the changed the quite rates could, that's growth guys you pricing seems at Maybe maybe obviously, all. for volatile if like many It touch seeing. very had that business there, talk up on On despite it's research you're about holding the just

Robert Fauber

Yes.

bit for continues of very That's a of nice us. certainly I the a That right. uncertainty. business about in be true. talked little You're to times kind demand

In fact, credit usage. statistics And COVID, during as view shared saw because our the into crisis Ukraine insights we've We usage this some customers usage really around spiked. of saw spiked during markets. the kind you really must-have

opportunity us. of in and the value usage also success well. proposition And actually pricing some at some that me, some So all the usage kind of broad at supports -- as the the excuse our we've customers then had for expanding the of

to we're all to mentioned, what platform And we CreditView ongoing I enhancements continuing be in that growth. to also will think support of Craig, contributing for some that continuing make is growth. some nice provide So is that supporting

Operator

And Oppenheimer. with moving Owen to Lau on

Owen Sum Lau

quick a have only I X-part question.

out could raised first expense second should overall you little you a about to that going interest about about second talk your sensitivity part we the the the the results interest please should quarter? Could we on to FX number bit. how model rates? forward? please you rising And think think is I the overall And that? So how more talk then regard is, in the business your And part impact to guidance, expense with the

Mark Kaye

with as I start trying I'll this consideration. here important realize of not comprehensive is for element the FX first, an be impact to

the quarter, both strengthened dollar the During and the pound. did British quite the we euro U.S. see against second considerably

impacted quarterly spot adjusted of quarter. $X.XX rates MA all If minute. and EPS meaningfully against $X.XX against MCO, and and And back quarter, were flowed against just of that in and MIS were that's forecast. down the result, against of pound the impact unfavorably from diluted last the $X.XX of step pound end euro a net $X.XX by to Specifically, And and euro respectively. the $X.XX as the X%, I down about for X% a negative revenues X%, approximately the the

of XX% in international XX% EMEA. generated is approximately our approximately operations. through then that, our of generated revenue And is So

at further the year expense against as as are on help non-U.S. currency neutralize our the the partially neutralize employees of and base And XX% to progresses. is to in the outside of specifically or denominated strengthening U.S. weigh operating about XX-ish our so FX is dollar going that's over percent least our dollar movements. Similarly, actual of of results going U.S., located euro the

I full quantify modeling impact $X.XX movement currency the So year full revenue roughly euro is the approximately were dollar between and of expenses $X.XX, full year foreign to by and by purposes, impact and to to if about $XX pound about for movements between the revenue the $X every the movement year about and dollar British going going FX EPS to then impact annualized million. million by $X $X.XX $X every by million. And million is FX

finally, foreign February, medium assumed neutral back medium-term And when exchange set have our I then forward, targets basis. think rates release EPS currency constant we over more if an term. we the in on So

dollar. about X.XX and to of euro dollar the X.XX the specifically, So to pound the the of

expense guidance note to XXXX higher January current rise that foreign On $XXX coupon of similar naturally in a due in interest more we and see look incorporates a little expectation remain U.S. XXXX if million our the the And current if you on that to a in XXXX. XXXX. so second appreciate, is targets refinance to in your And expect we $XXX expense will rates, the exchange million of million to size this $XXX question do the could headwind to bit or our January medium-term bit achieving notes become that second guidance, benchmark revised interest the we're levels a year. at to note is or pronounced. coupon a duration as early rates given half the of dollar maturing around X.XXX% a And have the continues going coupon

you debt really historically, we've that, XXXX, our our before upcoming and that's additional maintain we maturities And the they've of flexibility. context, The so part for in maturing financial commitment of best $XXX refinanced when million was could to effectively capital think about structure November manage XXXX. And refinanced our become due. example that X.X%

maybe don't event In the our interest reduce expense would clearly full we year refinance expectation a upcoming for comment the the on So proactively maturity, last that topic. bond the XXXX.

Operator

our from question will next with come Russell Redburn. And Quelch

Russell Quelch

we reducing continued you you so year do respect So do to detail markets? half those wondered a second the see be deterioration comments the prepared helpful far in could expenses. I expenses in of if what have been if to the on with would

Robert Fauber

Russell, Rob. it's

would And case all, the like that I into is XXXX. to would sort of actions to there not I welcome to in ways call. just into at want a on outlook a outlook are of of take during this. we the based First central actions the you year, take, I'd we our And on just based cyclical going structural terms of which There's XXXX. take going X definitely think second actions additional the then half look

are terms compensation of we as our managing as expense In activities could levers There accrual. terms that of incentive would our costs T&E slowing natural one. also certainly in hiring, cyclical that take, down be managing well

staggering initiatives really MA year really underpin and though, ability, be those MIS outlook rate. the burn changes you would I I have to important reason also investments a preserve structural-based this that's think strategic about guidance And when revenue. lower think or We for of is organic the reducing more the during our slightly those medium-term do

Russell Quelch

saved you're a for as as all a noted in be M&A. to this that is final Good. from where given your product challenge, you focus bolt-on case, I you If And balance follow-up, the the a a why perhaps the if schedule, investment to shares now? healthy, That's And you from from the the the you year. polite maybe to XX-month close the for going that's data need believe Okay. you're just back wondered do saying be And to note helpful. and comments, more very stop going guidance is what in firepower sheet perspective? NA rest low, buyback buying confirm in of not any

Robert Fauber

income So earlier at guidance reiterate $X Those some M&A. least as a important, capital end words, approach just idea share XXXX financial year. over share it's financial year include further lower you And billion. market point approach about advantage EPS the again, repurchases -- to full the create to management. one current this we spoke a more $X.X billion, firepower perspective, opportunities approximately that we of signal And CFO's In they think about only looking other, lower our take points or the I to able include key to is we conservative net prior specifically at not here that have to than lowered market repurchases guidance is other of of they're to for the and that maybe for the our amount. time, economic could price the environment, could the flexibility preserve in that to adopt full to that from slightly outlook be and opportunities. fact commensurately of by of reflecting could full as year our And is year to,

Russell Quelch

you you terms terms in like do in is products? then it And Okay. of if data where think M&A, of priorities,

Robert Fauber

Yes.

years, We've same our are a really with may that supplementing and We're market. life our getting of is banking us say acquisitions because attractive business. seen other we've would to the know verification high-growth you've rates also, few that a for that in with integrated investments, last the that done of we're what I there that the domain really call opportunities to your very us last traction the this seen make from be you've date compelling us for set important of our there, customers. over customers. in seeing to kind think also business, I'll acquisitions I added capabilities organic assets some kind risk growth assessment have would we're over bolt-on where of be customer active space, there the we our several years idea be insurance and very bring but

ESG other our the integrated at this so important scale and assessment of concept risk those customers. in for of -- things, but believe and climate done properties and are delivering haven't we same terms And are we

Operator

question with Mueler Baird. come from next our Jeff And

Jeffrey Meuler

given for magnitude performance, executive shift it The the and are know would the question corporate M&A lead-in overall compensation big burden that's plus is, the of I'm I But I would plans shared expense impact more operating segments an services Or whatnot. MIS? growth consolidated bucket, largely can question can there's be, between given or untouched from MA the the of circumstances? largely in I and compensation of how have reduction, adjustment independent guidance if but in expense the and the revenue the the answer comp because this guess incentive wondering expected that is pool current

Robert Fauber

Yes.

level, kind of have by But businesses obviously performance. and have mean, I So functions at X right, a I I bonus tale mean corporate our X overall, you're it's cities. pool, of to we a think high allocations been and our we guided

performance performance MA so. the MIS strong, So been quite has less

that expect And be then in our so compensation -- that to we accruals. reflected

Jeffrey Meuler

includes of to single-digit factors end Are XX, X And to on are an on lower range? restructuring year-over-year like to then you which Okay. And be X% at I get high percentage just when Mark, adjusted something EPS then, the I add Slide clear, the basis? charges, excluded growth. trying signal the that up point increase from

Mark Kaye

me reconfirm right. exactly allowing for That's point. you to Thank that

to And single-digit percentage growth your X% end that, restructuring lower the to full of So the includes point, for the program. from high year expenses. I signal certainly approximately would course, of like operating

Jeffrey Meuler

that adjusted excluded EPS, is And restructuring correct? from

Mark Kaye

correct. is That

Operator

question our from And Stifel. next with comes Rosenbaum Shlomo

Shlomo Rosenbaum

that? I conditions. varied those during at mean business? a debt bit terms look at forward yield significant interest think to it interest should mean with at up, declines like trying that really the debt needle at in just -- has that looking little way rising the we and Is but impact went from What just for about had back And high in it? the right potential rolling really should leveraged it like to MIS really looking MIS grown be debt particularly business in should I'm how XXXX Slide XX looks is be moving we're looking throughout we be we in CFO's Is levels of economic securities where point potentially to of time. the terms loans? about in I and the thinking in rates, their the delever? at terms or then current debt looking forth of

Robert Fauber

of is. year. is you to do in Maybe market -- then after I'll that. one. shows kind on a think global to of I new and few I coming you've into what debt wants this of of the business triangulate forward going think stock the think important the And issuers build obviously I kind number I for provide overall year chart part is think got perspectives, mean, if that an see what Yes. are Mark there I'll a around a rate ways growth

the on is over markets. the in near of equity in have this one neutral being XX the that issued of over you so of and very at years. you is had, because been debt grow. been mind, of term stock we've part debt ballast years. of keep good overall mix have our negative. we've years And I could has debt, what call. that on It's And But provide to finance of last touched themes to that's to of just a few these continued of a in mix And years. raised favorable few debt then amount has that we used driving see debt But gotten last the hard firms look has said the been think, the has the in important particular enormous what last lot capital that that the -- the the say was in we kind leveraged flow over mix. just the that, stock business. there's of a that the maturity the much larger. walls big fact, a kind flow conversation of term, talk growth of private even bit you And about an And for And I to about of And

that are deploying capital finance the And so with leveraged has they particular. And loan really leverage and that the activity. market in fueled buyout market

kind last has decade. supported important been I think trend issuance of that an the over actually that's structural

Mark Kaye

Shlomo, maybe, And could on comments. Rob's if add I just to

really and we history debt new time. bit different is And way over structural refinancing consider of their the a this want cyclicality the issuance, I as just to through consider versus when well you here, sheet about new debt companies I little we're helpful think in think a a the taking about market, that think existing issuers approach I following or growing really think it it's will example, direction activity but shift it could accessing cyclical the point. balance issuance, be as And as I of the both moment for in. lens in

first XXXX, turned half conditions trend the rising. met a year, from might belief our those a scenario. inflation deleveraging decline, is of funding temporary our happen: next X I central global various costs inflation or case, And growth to firstly, falling either reined if turn supply and i.e., in or So to our a and/or case or regions by X longer that next -- longer-lasting really downturn, in but growth really is the companies cyclical of in year falling it's It's by phenomenon this central the decline would of from issuance aggregate is demand is reined if conditions by sectors suppose, X materially, result really you train which a suffers half or balance. consider is and rising shrink sheet. structural where be until, to of or debt And governments decided balance not be across a that's hardly a second

so fallen. have global or are side, growth So demand social longer-term significantly you companies about prospects that it on the think lowered needs aren't expanding

low are there to supply debt and are expanding borrow follow think in So to to and saving point here, growth. in here of point on think we period debt years services, of is outlook, but and 'XX, economy and gone time 'XX a ultimately the innovation. issuance may vehicles over governments very about key year Similarly, aren't I to in important the a other low And a in savers and shifts very that the return but the or over less consideration. just remained and structural the likely rate, becomes less medium-term global of refinance final sort is method are not we sort example. debt And in for has side, maybe investing markets. savers the for period, that money going than to inflation is method has ultimately, many through a that the growth remain efficient really that not key how of physical And this financing

Shlomo Rosenbaum

Okay.

it. you to retention? a very really business Just levels X employees comfortable follow-up, of are you you with where employees that are And with of reinvesting that. you then guys for? or a the -- in things you're retention you Are metrics talk people retention you lot of Where have much to of of now? the are lot be will looking your and like for mean, there's that deploying I quality a improve enough that retain a that

Robert Fauber

continues than that the attract right. line retain need that kind so on would terms we we to we what services to kind data need, competitive of And employee the us ability more services, sure you're the In we benchmark we gotten not as through have are I that Shlomo, But that and well. the making business. only our think against and have investments better absolutely in we're market, well. that our be right our investments people. of has to made financial retention People to continue we to it's critical broadly slightly a based people sure pandemic general, in broadly. either it And retain some people making of or the indeed say we're financial in even we overall but make

Shlomo Rosenbaum

you. Thank

Robert Fauber

other about working real It's in of one important, flexibility all several other that something aspects doing the company all that recent world. Shlomo, We One you It's not is flexibility. workplace has about on a a that -- about time either. to add other we job employees to you and Compensation survey purpose at employees sorry, tell compensation good a hear our from that, we're pretty the feel Moody's. important and does in working but thing it's the a employee having value. did us our

but basket value sure just not on of compensation, focused we're continue to we're contribute proposition kind to on a to of that make So employees. kind going for whole of the our compelling things that

Operator

you. back now question-and-answer closing over I'll for that additional the conclude to Thank session. or And turn Mr. the conference Fauber does Rob any remarks.

Robert Fauber

Okay.

for next and to look speaking everybody, joining quarter. today, with forward you we thanks, So Goodbye.

Operator

XXXX you. Thank call. concludes quarter earnings This second Moody's

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

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

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