- Earnings call transcript Q3 2022

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good day, everyone, and welcome to the Moody’s Corporation Third 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 questions and answers following the presentation. I will now turn the call over to Shivani Kak, Head of Investor Relations. Please go ahead.

Shivani Kak

you. Thank everyone, for afternoon, us thank and good joining you today. And Relations. Kak, Head Shivani of I’m Investor This afternoon XXXX -- XXXX. for our morning this outlook the its Moody’s revised third results released quarter full of for as as and well year this morning, earnings presentation accompany are and this at ir.moodys.com. a our available on website release press teleconference The to both

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

Rob Fauber

markets have Thanks, business half continued measure debt identify, margin volumes, year. Thanks the now global double And strong that Overall, our billion of supported declined And I a going risk. well, $X.X operating that revenue conditions everybody in XX%. expect decline continued backdrop, to metrics, several levels to joining And the of first adjusted leveraged guidance today’s the perform expected in for few particularly our Moody’s by Shivani. issuance start and outlook data further XX%. finance of seen Good low as suppressed low the takeaways. XXXX did total And against time, and through range. revenue of macroeconomic is our manage Moody’s like which same and the with an persist MA we’re will growth revenue, we we in from And MIS issuance XX%, for remainder digit third demand revenue, the already the the result, space, year. the aware, increasing to And revising including in the of At while analytics afternoon. generated everybody’s with quarter, deteriorate. conditions that to call. subdued as to a for I’m customer this these quarter, last during to geopolitical

and We’re also outlook full $X.XX. now updating be diluted $X.XX our adjusted to for EPS year between

the across the to taking also at And and by be cost run for expectation include least million rate continued doubling more in And reduce these into headwinds, in realized in efficiency collectively, in the steps by put we’re as well call. initiatives. previously additional than some $XXX our a additional us Now, cost as a Company economic the I’ll our provide later announced And response head program, as the actions savings year-end. XXXX. to will decisive expense we various details restructuring position size of of strength

With Now, lowering MA’s MA business revenue third by rates exchange of an annualized X quarter, it the outsized strong revenue percentage of recorded XX% or MA’s a in U.S., recurring the foreign X% of impact outside revenue on for growth, both, and growth increase half points. had ARR. over

XX% a altogether, revenue XX% And reduction the against decline prior a impact on Moody’s points. resulted total was by Moody’s the and revenue in the was MIS, decrease movements in of X For negative in XX% this driven issuance. foreign in percentage record year revenue, period currency

the $X.XX. just of revenue and controlled expenses quarter, the net to income million diluted operating adjusted quarter Now, continue third emphasize X% for of expenses the adjusted lower as grew initiatives in and And cost efficiency EPS execute $XXX and impact we discipline. to of translated

raise provide more to interest market, higher. price expected, banks would conditions than to full-year prompted we and Ukraine decade, conditions. surge volatility capital Now, balance haven’t we era context a on impacting rates allowing in at be pandemic sheets of revised impacted markets. given and confidence conflict on pushed than following resulting others inflation levels uncertainty over and beginning faster remained the seen for the Meanwhile, anticipated further course the And a that financing, And market corporate shocks issuers in to stay And central XXXX. robust these ongoing elevated slowly levels, of factors further abate the our the like in in year, the opportunistic issuance commodity market let and sidelines for in transitory levels and instead, of and me the the the some MIS. additional outlook inflation

little year percent expect mid-XXs and that range. while the geopolitical MIS levels, the the next will and MIS updating at resume. Full for with guidance tap a And We those And And teams quarter our will recovery, engaging mandates of our the mute light to of on year year, more that building have And there’s is we drivers majority pace signed leverage our gone of markets. than improve domestic in content time, by been to over increased Latin drive we’re first haven’t this, conditions rated and significant GCR the in will the will and backlog and in meaning time stabilization with issuance to been market, that projected decline outlook only of through And key for Africa these approximately been market digitizing but conditions continue issuers. growth least macroeconomic This our opportunities, revenue to made confident to usage. year-end. have to improve scope we’re extensively issuance for investors both issuance a depend We’ve XXXX that customer acquisition and waiting sitting to still. we a experience progress America decrease across franchises, rating the to in Moody’s Local. we’ve now including the also XX%. through

look agency four our continuing opportunity there in differentiated refunding remains ahead, we strategy be are coming know the be of short, pricing to will over In our As intact, needs the customers. deliver we’re over refinanced likely years. on and for we our that to choice $X trillion

we operating leverage issuance market those challenging, are growth well MIS our as and for conditions through extensive current accelerate, will presence. and ease, be will positioned While capture to

ARR And for with revenue and growth challenging the currency despite of which MA, third be basis. revenue XX% to growth or of impressive quarter acyclical quarter on an expansion. quarters has XX X% of reported best-in-class market conditions, turning another quarter MA revenue growth, growth, proven and constant rates delivered organic MA and different. and the achieved no margin demand, MA third inclusive growing Now to consecutive RMS. X% that’s customer was also retention the

percentage-point our rates. revenue year full headwinds the that’s to guidance MA despite percent and confirming expected a line We’re top from mid-teens exchange foreign is range, revenue increase XXXX. in for X

We low-double-digit accelerate percent growth year-end. to by expect to ARR

We’re adjusted XXX guidance, of also prior approximately the expense basis-point that’s efficiency. guidance our ongoing raising margin reflecting increase MA to XX%,

fastest new And with take customers counterparty in recent customers data invested government supports years, set organically been So, KYC sectors. And grow and areas highlight to that’s us we’ve let existing and new verification. a and That’s corporate and Solutions. in and moment business integrating and like and developing me the just enabling Compliance that’s acquiring a solutions. to our cases technology combination of analytics to inorganically, growing add world around and create and class this use fintech, both,

recently We continue top to quadrant from receive recognition, awards right Chartis. including and positioning industry most a

RMS pass AI acquisition, the artificial places that. integration award innovative Also, recognized as a for And that’s intelligence year won breakthrough solution on give we’re on We number of one of of an fraud of quick solutions. for update anniversary the the we increasing being our one the for let our where me into also prevention.

that the achieve in front targets We’re to and on the I’m announced us. August, excited opportunities financial are last track of about

We our and new are that laser-focused and combined synergy on opportunities by capabilities maximizing pursuing strengths. products our leverage markets launching

for work customers at including into address in in help with of my solutions to casualty ESG operationalize the also meetings an great and our recently I insurers, data And which few Ian. of important being industry are we solution extensive last colleagues property hurricanes heard this in the by the So, rapidly quantifying them integrates example, workflows. how we array RMS. the assisted assessment our impact quarter, underwriting launched for about Fiona risk I’ve And as months, want past recognize underwriting over done risks, our to Moody’s and our their firsthand ESG insurance customers helping financial increasing

our expenses I our in several environment. view review fourth persist careful likely if we of prioritization further said Now, a observed mentioned at improve additional that we that given earlier. leverage, savings. have operating the quarter would the of take our last plan we will manage to teams the On actions and we have avenues issuance moving external to meaningful the And the through for least ongoing earnings market restructuring deterioration of call, and initiatives identified undertaken weakness XXXX, that in

to savings up of and our the of real estate rationalizing more than expanding reality current footprint combination $XXX in our from in XXXX to restructuring our double, are reflect providing global reducing a environment. to We workforce program market million the

ongoing our business current savings. identified priorities, We careful light of additional a of in in million that and prioritization $XXX up to have initiatives also has undertaken

processes. the and and ratings that these opportunities growth we our to today allocate $XXX decisive run sure and least XXXX these are lower will resources making be prioritizing these capture And expense to collectively, tomorrow. we discipline rate of and quality uncertain to are actions, are rigor are to million. take challenging we at maintain by as well-positioned and our projected Look, and we invest So mindful financial times

And that to pleased prepared Mark my take be So, your concludes would I operator? questions. remarks. and

Operator

from is line of question Thank Ashish you. with the first [Operator Instructions] Please Markets. Capital ahead. Sabadra go And the RBC

Ashish Sabadra

issuance. or my how see initial taking I should an XXXX, was if some XXXX, question. rate, provide initial wondering issuance. to you just if think color a was we an into higher wondering, it you expectation you in just we we I for that Thanks. think thoughts. on Is about about recovery? just Thanks There back into given we as if think may -- was share the any bounce reasonable get as that still more obviously interest gradual expectation is big a could could

Rob Fauber

sure Rob. questions multiple issuance issuance Hi, outlook. are we get around pretty I’m to and Ashish. It’s environment And going

said accompanied the market, drill this will could and as continue what of that we on long and me the let as talk increases know that maybe call calls, we’ll about were But and start I we market absorb had were oftentimes to me down, heard view have the is XXXX. that year. by big a thought when these they earnings -- well you’ve picture economic with And then So, of I growth. anticipated they progresses, kind by kind rate not as I

the is steepest the tightening past So, decades. of two cycle really the

it the I think initially growth. that surprised And accompanied been economic has market. by decelerating

insurance But factors, those the is roughly expect quarter the quarter, at think XXXX issuance period I the be third historical we fourth to to weakness the the down causing in XX% that disruption to what given be we line I the expected that grade that, I’m down the say, to me as the that with XX% continue from And the talked that back about historical average. factors you global excludes to that average close the finance, really that come like issuance So, market corporate pandemic. is that now were last was on pandemic into But at expect in we we noted overall XXXX XXXX. to from to almost years the that time heard has going those ex issuance, of changed time. including leveraged despite now and from and in of call, going investment something XXXX average XXXX and

be is corporate issuance cyclical I kind at think moment. get just I contraction dealing of for of I going with off the of certainty as illustrates get to this ex So, starts and that see XXXX. down we’re now the from that average longer of two record the the some back kind it able its the of depth about, the for key year, to we for And volatility. market to remainder think pandemic issuance. years down think the before is no unusual to And But meaningfully

be the to going think I case. that’s

to other as there, me let going have me go let we and forward. some we’re I’m questions sure issuance So, pause

Operator

question go ahead. Barclays. Patnaik from next of Your line Please the with is Manav

Manav Patnaik

Yes. anticipated, Rob. Maybe you follow-up as I’ll

talked You might how I be correct? a numbers. just I refi guess, a out. that group, over $X ‘XX, compared as hoping the which much but on needs into the It in curious of rest capital you trillion as was breaks us just on allocation in just year, typical more help about of the part then, refi how years. it looks of And of might more your four that’s like if to, be was divination, categories, could

Rob Fauber

had years to in as EMEA. that of trillion refinanced interesting, of due $XXX as to States maturity and in United said, very trillion included, ratings you materials that’s significant get $X to about $X slide actually the debt four withdrawn we debt coming the we we got supplemental walls. billion the trillion, I So, fell across -- And over study And, it’s of out -- of around a $X.X think, it’s kind the the Russia. amount normalized, you

like refi But the like those grown at something walls X% So, actually look basis. a the XXXX. just did year, interesting, back grew grow really go you what’s on think XXXX, maturity if from I actually slides XX% walls this Manav, in past like have for back,

another a we’re XXXX, few actually at XX%. they’re you If back go up looking things. And year,

are walls when some continued grow, one, So they’ve obviously fact and activity going was on just rates the the were was maturity absolute significant despite refinancing there ultralow. to that

spec U.S. at a look for moment. you If grade

That’s to they and And look are years So, of the at since highest if percentage two you the thing, try your the question. first started would about XX% our Manav, in refunding we total. five-year to triangulate just I studies, also to tracking XXXX. the other say,

to And MIS thereabout activity XX% That’s revenue. corporate be financing about the If you I a our to apples at XXXX, look is maturity for big for and that’s expect issuance what you the understand and business, but what XXXX represents is of walls look corporate little number. a oranges, the pretty for we it at XX% expectation in of recurring global XXXX. remember,

support So XX%. that for now we’re other talking about the

Operator

Please next Kramm from ahead. of UBS. is the with go question Our Alex line

Alex Kramm

to I will us the restructuring gears if program, be a bit it the little base, Mark to wanted understand I cost you, out more. shift flush helpful guess, but

to think think a So, I medium question, into And achieved it’s the are margins ratings much net all about know, on next this the year, still intact? low-XXs to your much if there? guess expect a it’s three-part of be the incremental I XXXX, impacting business? year, million we we then, by will And on we the important. of $XXX about base? that be And hopefully, outlook as how I cost actually how then, the is incremental but term So year’s how end for should going be target basis importantly, more I guess, growth accelerate thinking the

Mark Kaye

couple good during of afternoon. anticipate session our on I Alex, we a today. get may expenses questions Q&A

margin and maybe so, specific start questions restructuring later off of your And now, can addressing broadly on. I’ll talking program by take further the we some about certainly ones and

for year. early around disruption anticipated the we extend heard you and has downturn, we’re know, more will thinking than the Rob, what that in you taking that means at been commitments market and primarily established last expanding we’re severe fourth And and through So, decisive. longer has the this XXXX from quarter. prudent program because XXXX, actions really comments least we quarter, being as And prior and without extended expense that financially geolocation consistent the restructuring

skills all So alternative approximate related going to additional areas an of that and requisite in resources we specifically, increase staff. million cost through XXXX, the our expect that’s the include to growth And charges ensuring and to lower And aggregate invest to or of $XXX high million, talents focus up reduction year-end well protecting MIS where strategically estate real and remain rationalization, further in to utilization that’s and MA. now as locations core of as both, business, ratings within our firmly continuing exist. allocated while quality $XX

for will opportunities charges, the cost and that take forecast last program adjusting additional just we well expenses of towards as $XX reducing XXXX. your leased these really with evaluated we an now up personnel the annualized as certain $XX established mention as non-compensation well business margin space, upsized that’s XXXX. million, $XX be action strategic into policies, Rob $XXX your heard that are to means of the $XXX restructuring of in lesser restructuring savings year-to-date. restructuring enhancements. strategies. support are select approximately the the continue estimated that’s reduction, use as in to towards generate year including savings, related $XX expense and than range these will be while record minute take under to stabilize of restructuring annualized anticipated XXXX compensation guidance savings up medium-term of And million remaining result in to mid-XXs cease we charges at and then million year to redeploy extent, our recorded For in for profitability and question, to as MIS’s And reductions a bands, to $XXX these that savings at double office as XXXX, savings exit of the we they’ll provide million part $XXX well. we’ve full $XXX charge to to quarter. going use we recorded actions rate of in investments, and workplace to restructuring that adjusted the to operating in that other percentage from salary to to as operating that portion this along actions reassessing million a of And least includes plan actions, those you pre-tax And achieving a additional that to Furthermore, targets have million financial million expand $XXX least pretax as projected we MA’s And business some full and, the plan increase as February, these adjusted cost million more margin our plan ago, XXXX inclusive we’ll million we million and certain second margin range, in and of official to we run enter the program,

Operator

from of Kevin is the ahead. question line Credit McVeigh with Suisse. Please next go Your

Kevin McVeigh

be of level But the don’t can on you year-to-date? know you adjustments any of who based management. kind give of Great. would proactive conservatism on what Thanks in expense this made -- the have XXXX And sense us for. I so the a much. you’ve guidance congratulations

Rob Fauber

today. Thanks joining Kevin. Hey Yes. us for

a the we fourth that of of put markets, -- because we’re remainder guidance if unfavorable another transaction greater finance of throughout quarter essentially have And And mean down the and guidance assumed the the mix revenues of would leveraged range. into than fourth give we So, seeing low-XXs-percent MIS of issuance of of a -- remainder the the would in kind sense, be now revised triangulate the year, softness -- of for together be that continuation of quarter implies mid-XXs-percent down fourth be our the be that the you in, range. they’d to the just call back we’ve what right? assumed some low-XXs-percent revenue, down the when will you for way implies that, So, down will quarter it, rate to And that right quarter. issuance of kind the revenue MIS in in then kind range.

us be the inflation in bit in the that a because to think at about assuming a going going Fed feels And continue thinking right environment. I the way pattern can around turn, continues, environment peaking with holding year, the We’ve I we’re until a increases. as and about this kind a in got more you’re wash because pretty certainty so trajectory that market we’re of of that a of get and, rest to to this some think it some of moment. muted confidence And we’re of rate pace the

Mark Kaye

uncertainty currently points. in highlighting resiliency, shown we’re has the to Yes. resilience of contrast, our really to the that’s our wider improve nature seen disruption the which mission-critical And then, level current products. that of their as simply experiencing. market what MA we’ve Maybe to quick underscores modeled and continue customers risk outlook that elevate are the our market significant briefly heightened in around worth just I have volatility It’s two prior relative periods, confidence intervals and reflecting and

Operator

go Your line next with Morgan Kaplan question is Stanley. Toni ahead. from of the Please

Toni Kaplan

on again outlook of ask to sort on issuance long wanted I term. the

at looking lead highlighted of would sort refunding Rob, the debate? think versus that or decision you cyclical, And if wanted you or You points just influence cyclical that try understand anything that’s And seen the any know, needs data just it’s that to said would that that to delever already you I change but still coming think to maybe debate. structural would you’re far the supportive. in will that so that there’s that you’ve companies anything years

Rob Fauber

Yes, Toni, sure.

deep moment. uncertainty. all at as back there’s the We’ve zoom talked So, here. about into that. macro But out of zoom need cyclical do the we if said, kind of we’ll you to pretty issues XXXX, I’m some And we’ll kind Toni, sure

for market providing in off two issuance significant. looking were very been also and concern working we we’re over lot and of the there’s change transactional provide few the You’ve markets. grow some been talking walls, this But are And some, into there. will the in years. we’ve seen potential the support structural I pandemic say, revenue. of turns that But, that relative excess And support maturity is to eating no It past, you I would the of remember feel also supply calls balances. to the that things, fact, We’ve for refinancing is on pandemic None -- I debt pandemic out there’s of We changes over cash there certainly, are financing. those obviously tax building years. I during a think, come see started got There’s rates, walls. say, that down. issuance recovery to focus on the ultra-low been we about during U.S. -- cash out are were codes they’re talked other with of corporates attractiveness the and intact interest some things. about that those to various and, a at continuing

at pile going in moment, last to where I similar U.S. U.S. year. about that Cash X% across about our say, And free at U.S. cash the over one that at rated XXXX. since zoom corporates are in to to So, that’s When to flow were been it’s look It’s levels a corporates. way are our That’s I’m debt, but would decrease a in from a cash shows XX%. pretty for look the on good it we Toni, best standpoint. shape the XXXX. also leverage they report

And to some on spreads means take kind maybe continuing last historical have moment, remaining say of the some of around me, see the would corporates still additional we’re I to leverage. that, at So averages. thing that room some stability is to then

me backlog You of FTMs. a heard about talk

of who and term. markets. long that’s are to term, from want of not do despite issuers tap shorter a So a interest a lot seeing we all have maybe -- this the But we that’s maybe

I but this So, cyclical, as that go, mostly is, our for good I feel all economic in to be is about come to up, we picks the issuance. markets. and leverage think cycles said, growth expect positive as of do a recovery we

Operator

Your ahead. Please of from next William Andrew line with the go Nicholas question is Blair.

Andrew Nicholas

wanted Just clarify a to restructuring on few program. things the

that baked million want expense to XX. want color, in cost looking to that $XXX make something if incremental contingency I that in it, savings give also, to on slide And of any sure apologize -- sure make could of between expenses the up that’s I First, opposed split make then of plan. I terms a savings the I to non-restructuring-related as want actions, corporate and I’m the missed I MA. to versus sure at those versus that’s if you MIS

versus -- cost maybe of it consequence a of that savings think, you. that or helpful be I that would actions versus growth year? understand to mid-XXs Mark, how much cost next some MIS Thank range you baked-in alluded is to,

Mark Kaye

we and incremental supplemental Andrew, the let contingency-based list anticipate a from Maybe it going we try group question I’ll of XX in million levers two that your slide of of taking. in to certainly set, those segments. of through me that that that In we different perspective four Those have the ultimately not savings expense are you And terms actions the primary take savings the will to to the really on for business. to a page are $XXX will how feel translate buckets, are up give those savings.

smaller purpose-driven a hybrid related much work pandemic, office And very effective environment this is really and pre environment. to were be physical lever to first our The footprint. enables and equally us much with productive, we as

rationalization part that estate further after estate real exit between employees office And have that million looking we’re their in range well And space. on opportunities rationalization quarter, identified of plans our gathering we program. estate total. million global of to certain global footprint use workplace that restructuring as as last So for we our from is announced additional feedback to real the assessing $XX expanded $XX preferences, at best as that real

non-compensation certain is costs to you years. primarily those prior that and have point I’d business-facing, like the compared to two are category second The increased T&E

rise, these as anticipated are include to terms. into existing we our as And are we assessing any services fully going well external although discounts others reducing service cost through for there that’s volume Now, that more rebates day-to-day supplier and avoidances, and negotiating expenses be to prioritizing whether responsibility. absorbed favorable can levels of with comparable

those we to mid-XXs invest. also that as to lower-cost lead the mentioned our in and going skills taken of benefits. expanded and plan really to continuing base and of key is ratings in category our the and already And And a to high of compensation adjusted people. we but year. And start where higher example, third compensation what’s quality hiring protecting areas. And themselves hiring levers again, to aggressive and locations, some the And naturally business, finally, the XX% range actions that’s in increase as of for restructuring least through the and at requisite expense accruals. largest exist positions and actions we part set the we’ve MIS going talent performance I fourth And have open expense of those then our Now, operating our is that’s margin, our really earlier. that approximately on prioritize financial largest, utilization targets of next based flex the incentive the that expense are at compared occurring really, to alternative the and ultimately program, those to is actual

Rob Fauber

Yes. to we year are contingent. to taking XXXX. that And we’re sure savings realize full make can now those for not just that Those actions reinforce,

Operator

go Your the ahead. is next with Jeff Silber BMO question Capital Markets. of line Please from

Jeff Silber

that issuance verticals environment. we see looking sign just which I terms want the the to issuers back where get shoots. think are will and you to be in back come of green for market I’m first into what the those curious might to

Rob Fauber

Yes.

maybe about And talk a So, time of evolve good I this to is about that. what kind are triggers and we on coming starting the see over XXXX I’ll issuance talk as those touch how to quarters.

some uncertainty. But provide the is, think certainty appreciate, that So, just as increases. we got our too and trajectory we’ve to inflation I really, of the that our the confidence thing, comfort Fed all is in to quarter always seen call and so is as first trigger into I you It’s And can And February. official And do, fourth yet. we’re peaking don’t has earlier, get got the market first the the important. on that forecast that so of really I given then with market. I’m means the early. to earnings we’ve guidance can that rate market pace sure, get mentioned get think that going

the overnight. first we’ve Fed to issuance have is of peak sometime And going just so, view into We But our early take that it’s maybe is going got still that it’s are think just in to going to funds XXXX. headwinds the me of some going are now where XXXX we’re saying, disappear not quarter that of And this. to terms tough the all to and worth relatively that, a kind think of we quarter. to resolve in of first in comp in do just I

periods. we the I think of are of prior year when the for think that terms comps. and of issuance I easier from fourth half this XXXX that’s third really going of the And XXXX the in gradually of second quarters us rate get improve throughout to some kind decline in trough particularly and

So, look I that certainty. for we’re to think going

in we the I As markets terms up. said, what of typically see opening

finance the -- issuance. issuers open to start up. then see market to opportunistic see big investment-grade you start you the issuers, leveraged finance and And investment-grade leveraged investment market see starting to higher-rated you really back the So, tap

to I going finance market under open spreads look as spreads that around start we’re leveraged important want see to what’s So, are to that to averages. control, we’ll said, historical up. the default at And -- then, are rates that that’s have

lot we’ve lot As backlog. not to dry equity have lot of of get the of got a We’ve first-time a got I said, markets, waiting there’s a mandates powder we know and deployed. that tapped private

can I of to how going when kind that’s about take would think So, market. to we it’s what unlock to -- the start

Jeff Silber

Thanks much. so helpful. really Right. That was

Operator

question the line is Sachs. Tong ahead. Please of from go Your George with next Goldman

George Tong

issuance with to will implies XQ. in range, topic Sticking low-XXs debt your the guidance be of the down XQ issuance, similar

declines progressed, of If quite much, moving couple steeper worse the And at were much in weak, low-XXs. you look weeks October than did quarter? through it of the get the first how progressively XQ

XQ into Are such you baking levels? get XQ rate just seeing what reverse curious, exit would that so, XQ? are early markets and at And you you are the what better assumptions So will XQ you and overall assuming that land from average if in the that? prompt

Mark Kaye

definitely guidance I the for remainder the of and year. that consistent remainder very looked outlook We issuance, overweighted we of the setting the October our for think year. your scenarios the September underlying thesis is at month-to-date the hypothesis and informing our with in

points seen. the I are for However, cyclical the are there is stress about do predominantly than nature. historically year thinking to want this we second, here. And now bands disruption two One, wider in really believe we’ve the what key outlook

talk ago we point cyclical of may heard cycle. the a You Rob be that about low minute at the

in for year, may to the transactional we’ve the level of that in implied same seen are we in be revenue see they’re fourth and third while half the declines next the unlikely that of seen first So, quarter quarter. severity fourth --

So, those about of cost first things as of the the as develop about of we sort that full half year the we’re thinking we’re are year. next the kind thinking for and

Operator

Please go is question Lau with the ahead. Owen next line Your of from Oppenheimer.

Owen Lau

talk please your how Moody’s your achieve Is can private medium-term a you. markets about backdrop? to any based impacted ability how Thank credit targets of get results? think there you the that current you do still piece have also, And Could your on area it? about

Rob Fauber

Thanks. Owen. Hey

been some So, this. this from investors questions topic, and getting interesting is an we’ve about

let So, me a on few share this. perspectives

up. risk about say, segment of $X.X to that leveraged in the the It’s versus hold of trillion. of market are that credit public size to finance market the in this $XX just First potential continues broadly continue expected in like $XXX that class think, done get that loans for XXXX. of market. trillion market, a deals cannibalization to something grow, million $X.X I’d represents, That’s the and the done minimum market the And those But of up. private billion I all, in of threshold XXXX, it, the asset kind assuming kind the was, loans, call

the could be as to And of dislocation finance $XX markets. So, cohort as loans $XXX billion. this that we’ve high that leveraged figure billion in public had kind year, severe for of

market provide financing credit about was to brings risk question able us were while So that to some for sustainability. interesting public yes, and certain the dislocated. markets step transactions the private an actually and in But think I

leverage stress. market the debts public -- public during meaningfully typically credit periods private default yielding, more with markets, higher private provide expensive of of typically clearly The is rates so higher than leveraged private And cost higher flexibility So, right, to leverage. markets. debt more high has than expensive companies have

I is So, time of be this I’d just people wary you or sector that that different. tell this --

be in remains fare we’ve seen it if going credit stress. to got is asset So, to meaningful class this how a increase

probably of to be true comparison private it’s hard able agreements think going to in may lenders I a credit apples-to-apples that renegotiate default be rates, on given to get stress. times

regulation, it’s where that growth and where in add some also market for capacity value. that to call think So, is we people this to growth I is leading but can opacity that in start

think borrowers, to the improve, credit into move public from some as companies corporate to I as the said, profiles want private these we’re cost I debt, the of first, credit markets. their going of I credit So think, markets as see private given

the first-time public time. the markets that over into markets, So, I of think, does private credit issuers growth future represent some

they’re credit “Hey, other internal got more rather considered to are gold we’re transparency models looking funds independent as that starting invested we’re see in to that credit the credit and the EDF assessments to is fact, invested saying, Second who our and private public ratings an starting And quality around outreach particular the credit we they’re we with tap We’ve before that funds the a able the portfolio engage want thing world, we’re of may than provide credit to say are standard all, for how in So, sales for I in and to investors need. these be companies the engaged the in the to do, markets. ratings assessment funds things we’re I’d serve positioned in.” those risk or credit of analysis these pipeline of get we’re well credit market risk actively like of And really this to think are that risk that using, portfolio that. around calc develop really in.

as year the in market private is the market market. we leveraged a to seeing markets the I in were not what credit public so mean, source So, has as private is that well. last challenged, yes, dynamics -- been meaningful thing to I’d credit say this starting of funding immune seeing a finance bit are shift but we’re

cutting of pulling funds or packages credit debt back component increasing see back the you from equity So, deals big are on buyouts.

private can role borrowers, engaged market. funds investors we bringing this So, by while more a we’re credit with private see and equity, to play important how to transparency

So stay tuned.

Mark Kaye

medium-term obviously well guidance resulted have we the prior Owen, as February of shocks And to the unforeseen And year. as that target, set year. your in mismatches pressures intentionally following our as from would years. to the stress inflationary driven interest period assumed this GDP the demand-supply that And of issuance just XXXX period which rates Russia-Ukraine assumptions on significant gradually stability exchange foreign we to strong medium-term question, was base a decreasing. the historically well conflict this rise emerge. included so introduced on geopolitical we by economic rate post-pandemic as second medium-term very degree targets, our expectation the In global two as gradually over with establishing for

rates quality. a banks we’ve current at not experienced certainly central the macroeconomic flight result, unfolded expectation. we’ve know, has how react seen we of degree as this with And inflation to significantly space headwinds inflation and levels seen decades. with However, FX is to the rapidly the in in attempt rise quite XXXX not And as in rates

we of what this factors on in market severe those the spoke so, to lot contributed about more extended And that a call collectively have disruption. really morning,

and in return see XXXX to working going for key factors the capital Now to macroeconomic to not underlying discipline and to drivers fundamentally, remain believe influenced pattern the we’re medium-term be efforts heavily recovery issuance obligations, intact. invest expense beyond fund our but And refinance firmly our now that business only targets and growth. market existing we their of around as really to needs and is by going those prudence the and outlook also the issuers achieving the

given February. those call earnings revising in our so, fourth developments, metrics we select be when And we’ll medium-term quarter guidance hold

Operator

from is next Alwy of with go line Your Deutsche ahead. Please Bank. question Faiza the

Faiza Alwy

going sneak to So, I’m in two.

some that that Just -- outlook margins. that investments if reason this one -- like And believe my your you’re on on interest fixed if ‘XX? to for And where you’ve rate about maybe you rate any ‘XX, I year? believe have of planning is for increased you make you deferring question curious I what’s the I’m outlook and of can MA talk originally some for hedges in second broad place just is, you that if floating. sort sort your for were swapped

some perspective what Thank So exposure to that curious around share sort could you. is and those you of if your hedges expire? when

Mark Kaye

MA’s afternoon, I’ll margin, speak good Faiza, the XXXX. for On and really questions. you about thank

quarter. margin momentum. XXXX’s XX% investing opportunities last a XXX rate, our approximately of are floating actual question from XX% adjusted is headwinds operating exchange fourth foreign by at to note new basis we a to XXX in growth from of expense we compression that issue actions to MA basket rate expenses all rates. On up around year of ongoing between MA’s of exposure full approximately business. seek of that convert translation second still capitalize And expected and a basis debt that points improved does portion areas, initiatives, of rate underlying from expect expanding our basis year-to-date, obviously your points will rate XX%, corporate XX%. through we we the XXX XX% control primarily and recent we so existing off portfolio. supported includes margin above shared about we approximately debt from the rate back points So, net to XX pleased And is really be unfavorable is do of of XX% quarter And we’re acquisitions, over in to maintain support after still And basis floating floating exposure, service revenue on to increase and margin MA result which of the or fixed RMS. guidance rate means outstanding outlook initially the so to what overall maintain in I it points that margin expand reflect in interest primarily exposure cross-currency a swaps our and as although our fixed raise

most of So, importantly, dollar approximately XX% exposure. and exposure of X% as that’s floating now the XX% rate portfolio. debt U.S. September XXth, portion And our then, was a euro just as

performed the to from a now anticipated just latest impact. U.S. curves you points XX -- the or about just average well -- reduced neutral impact very also to X.X%. it $XX is million stock the and and our XXXX dollar about about our what by I an this moves, down could think weighted moving And in interest euro historically. basis portfolio forward So, swap rather to has portfolio P&L than imply to for and try million positive forward If under more they $XX It’s about year. annual over expense average of our brings by cost capital think

million account by $XX million. fact past to I debt expense August, expect this between that taking that the we plus So, into and XXXX $XX be in would interest higher issued actual the

Rob Fauber

while, is accelerating being continue right Yes. we to that balance And growth investments just to get time, trying same that ARR in to the we’re make kind of MA. at the reemphasize, making need disciplined the to financially

Operator

go question ahead. is Huber Please Craig Partners. with Huber the next Your Research from of line

Craig Huber

on maybe comp housekeeping quick X% then, this it appreciate what year, it first the the two usually that, year, next going then what’s what But costs. you Historically, versus the maybe What’s incentive quarter about it’s compensation raised on prices the please? materially Thank And for pricing and business talk third guys average could for price if it. for you. that. And incentive it was questions overall? on to portfolio. you and across is And X% the was to to ratings different touch I the versus your quarters? outlook be Two in early too

Rob Fauber

Rob. it’s Craig, Hey

time, always annual mix. across on uncertainty about of -- a talk business. volatility this kind price really of -- importance all, to the of So and the X% of increase say, I pricing, the looking every we’re X% doing. In our we’re pricing we’re very you if say all and our has first year, of we the coming And as I’ll and reinforced important. and detailed as that an value us the is we But list doing the why we regions, that’s all for our come mix based MIS, bit our actual anything, do and would hear touch what conduct review will a what always issuance really as and of on sectors -- the from? a average. work issuance reflect our going on Where prices does on of our kind of in pricing where MA, focus more In product we our that across always and value-based increase year, about realization And does probably depend does, development -- is to the think actually pricing. integration than it of content as historical so

but new price upgrades things also into to actually offerings about sets analytics And our those increases looking we two that together. and to that’s integrate because allows both support We’re add-ons. why us and think data

pricing products. opportunity to and forward. the some to support usage very demand continues And going so, see our good for we’re continuing That

Mark Kaye

accrual The $XXX was $XX third compensation and quarter respectively. million year-to-date and approximately incentive approximately million,

incentive the by the million approximately quarter, approximately $XXX for primarily that’s lower revised XX% and million. than the in we compensation around to incentive for of be rated full accrued outlook that’s issuance. XXXX, year driven downwardly For compensation $XX fourth expect implies, in and obviously, That we total a XXXX,

Operator

Your next of question ahead. Please is go line from Steinerman Morgan. the JP with Andrew

Andrew Steinerman

about Hi. that ask trough comment. going to Rob, I’m you

improve? we be MIS have little what like third fourth you trough mix would more So, quarter could fourth revenue issuance, if you meant start be in specific to debt unfavorable you a just for and still is to likely quarter, when a you the think when to noting that expect

Rob Fauber

Yes.

in quarterly this trough -- a we’ve MIS, we got what in year. Even So, got in year-over-year of meant would the expect the fourth a revenue or so quarter, we was throughout next though third, we’ve first comp that tough to year. the of quarter third really the issuance have quarter of declines in see we’ll out the But the here an that think rate declines next year and start bottomed fourth gradual balance improvement probably in of perspective. from I

Andrew Steinerman

Right.

got it. revenue you. Okay. Thank That’s a comment. I

Operator

of Your ahead. go question is from Stifel. next line the Please Rosenbaum Shlomo with

Shlomo Rosenbaum

Manav touch on about. talked I and want both, what to about Toni talked

Like keep to to CFOs, call account into down expectations? debt increase how EBITDA, were kind the going revenue then walls, divided trying With XXXX factoring paying earlier of or And refi how heard of on on that provide they can flat you we your interest just MIS walls revenue.” out some you besides if refi get for X wall of I And debt.” earnings call on the And CFO into doesn’t to people just this about, provide I at just it of “Hey, their refi refi have this morning from just refi walls say, with would just the expense. the leverage what if our that that measured guidance, these real want up, by could we start “Hey, take we’re are is something we so on that percent debt mean, the understand I’m revenue? the Is as most kind walls, that sense more that that? the of rates midpoint much talking saying, there to were support And going looking EBITDA.

Rob Fauber

Yes.

to and to help. back So, see to try can maybe if just come this triangulate

it’s in your about just think the If corporate part talk the space. and the the -- let’s question, you about think -- about if you first of

forward is year. the the If of year, refinanced given walls I so do maturity are XX%, for our maturities of at levels about issuance the you got how when then say, you as revenue, that right? with think, walls. corporate is about for is our I those got understand there XX% on But And coming and to think Because corporate maturity about it’s tends well, revenue, issuance size, to finance can okay, financial in we XXXX, years it be global calendars expectation that, much start MIS much much more activity, is and walls roughly next way you and right, how XXXX maturity kind that maturities. on. how are transaction, is going to of I institutions well, of current I’ve We’ve think So due build of this right? XX% then just get so then, in look to -- And what to we four now corporate? more stable can regular corporate recurring

So to hopefully, current gives of kind sense relative that the market of activity the a today. you levels in the size

Mark Kaye

And believe obviously, trend or deleveraging for of market disruption year-to-date dearth the that lead just us the deleveraging. result expect to doesn’t as the issuance on indicate a we’ve the seen, cyclical of or of second, a

incurring for one example, to balance going cash necessarily the is reissue required debt be risk therefore, rates. cost sheet. then and rates Just are higher for thinking those use, the the retiring That’s factor increases, the being use we’re more the on at the company rather of individual rates through activities, or retain lower estimating off as example, to deter rationale rising companies And demand. borrowed treasuries through the is when more future from think any potential favorable interest debt that refinancing of of retiring about in excess pay investor factor and, certainly than -- to potentially likely to debt, there at was going that future borrowings

Operator

of with from Russell go line the Quelch Your is question Redburn. Please next ahead.

Russell Quelch

of questions. A couple

so, right why? I Decision quarter-on-quarter to Maybe from this am the fallen Solutions saying ARR And that in start for XX% previously XX% there. if quarter? Firstly, has

Rob Fauber

how but able to need nuance I that think to provide we there’s here you’ve to understand you. drawn conclusion, be I that some

always So an number ARR has it for been organic us. is and

not been number So reporting. have ARR had we our that we have in RMS

was Decision included. XX% but the quarter, in So, Solutions’ now grew previously. with that’s It RMS about not ARR

quarter, created that So back a like-for-like was on XX%. Solutions’ go now basis That last a been on ARR. have Decision X would Solutions, XX%, we Decision drag percentage-point to if the

RMS So, we profile. of think this growth lower look has actually everybody this And acceleration on like-for-like an a ARR. a knows that as I call had at

is in out at zoom ability the same metric. the would confident to that’s so if than profile. say We’re thing growth the in about has we is we’re understand, ARR effect think important growth lower ARR MA RMS MA, enhance to including it now true the it our that level, today too. a and I But dilutive that I

So a drag RMS percentage-point ARR. MA overall on was about X

up as basis, So we’re ARR, on year. a have the RMS, X% about guiding MA quarter. know, XX%, included not if from full again, you double had been like-for-like digit we last And for low to would

ARR. mention of me heard feel we you That’s why of that ARR. acceleration So, an there’s acceleration

Russell Quelch

wonder And way of makes reducing sort the M&A just the scale as Okay. as Yes. just appetite experience Thanks. sense. follow-up, would earnings And That I business? be. in environment opportunities what deals in is in at this of for the volatility a I a seriously mean, XXXX, now MA given look of time to more your

Rob Fauber

Yes.

a So, active We have. development. to we very have always approach corporate

product maps active looking feel We our in good and for really customers capabilities are up and have do gaps. year around last and and several and road business we very years, and our bringing call across insurance blueprints last we pretty bulking our over really have product what about we about some what well-defined various Obviously, suites we’re where the RMS climate.

think about portfolio pretty -- got. I we we’ve good we So, the feel that

And willing these synergies the I buyers think their pay. and sellers the you valuation markets to transact spread a are bid-ask what it’s than there’s in Sometimes to think between disciplined would is harder sure what because make we we got always sure the make we view return us, I to as hurdles have, can that We’ve want. get achieve the that buyer. to a that

So say, looking. we’re always I I guess, would

frankly, value that in disciplined about we’re around and making over those deals good make very using And really getting this really number the last last done several and of to acquired were time the that market. years We’re progress of the pretty we’re we out this that the those a seeking been feel acquisitions few And integration to get. we what we’ve over years. sure integrate we’ve we’ve the

Operator

line the Your Jeff is next go ahead. question of from Meuler with Baird. Please

Jeff Meuler

commentary put could Maybe if around you profile. some additional growth RMS’s enhancing

perspective, I that showing prospects new think or not? I demand a from you MA’s the are leveraging a on guess, So, in it, capabilities in through financial terms I for -- And bit ESG from track integrating for hit it’s taken market? for there’s XXXX. like target and the how caught Thank you. ESG are to but solutions I instance, has related the clients upgrades Moody’s your some a heritage in of Where terms platform Is and going? think of that of

Rob Fauber

Yes.

RMS. we that by a things And I’d making number So, pretty around with encouraged of we’ve we’re real integration. some say got where I’m progress are

track certainly that financial announced targets on for the We’re we at the time.

end. at We’re year

revenue We doing. continue of about year. things I that had tangible sales next the mean, have ability to our some we’re growth you accelerate to and asked confidence over

Let touch few. a just me on

and underwriting for traction of broad coverage. some is our So, Moody’s of then what the customers. the looking nice able underwriting. were RMS we ESG to we’ve really being taking customers content it management portfolio one And that just And into for processes integrate things had that’s ESG very call and around

been progress that’s some -- made there. good so, very we’ve And

life also when much And life Demand. we and know, thorough more substantively on risk able capabilities. existing into developing announced pretty this their product call Climate we climate, we climate Second, map but move been be as want to a into we’ve And then around wanted insurance to integrating we’re leverage offerings. models we what on able road be to deal, our you RMS’ to

and and banking a lot pipeline building engaging been in capability, leveraging we’re commercial customers space around and sales about climate, we’ve of real estate want what with IP the RMS, so, for that. building and the and a need And models, that they out we’re

of lot we estate. that a around commercial area synergy see is Another real

a has RMS to You’ve physical about relating properties. got -- information, depth of obviously, the risk

of aspects amount market, property enormous terms information wide and so creditworthiness tenants of have on. of a of location, of in We any given range about

we that view we’re for very on very real only offering to so, think a there’s create of to ESG be rigor more we financial high-definition a ESG, climate into. of I’m what is the going going And briefly of to to ESG that call there and because together can us. around see what market that, more estate. and a get to to all pulling the And interesting touch translate we’re that kind I wants needs. is more specifically demand be But risk lot to able and starting that’s with

X.X of what kind as is I that market for. version think looking of the of So,

where with to our some broad market XXX our the on say, understand customers and is this Second, need we’ve coverage. database million capabilities. the And got conversations very companies.” coverage we’re say, the ESG Orbis Well, needs “I banking modeling profile having of, insurance great companies, and leveraging who XXX,XXX ESG

And weather scale. for So, we’ve the growing that at and there’s related differentiation is physical and a -- source RMS, climate understanding then there’s And demand for with lastly, transition. of us. extreme risk just to got real that competitive change

Mark Kaye

two around quick that. numbers just Maybe

the we maintaining percent up RMS’ our historical growth obviously low-single-digit that’s be from are to growth So RMS mid-single-digit in in expectation range. percent for rate range. And XXXX sales the

or in diluted now accretive RMS to accretive adjusted XXXX. expect become to We also moderately EPS

what for that’s for and as revenue in then communicated approximately we we model market. growth previously So, expectation low-double-digit ESG our And a than to to year projected is our a million. the earlier and percent $XXX finally, this previously climate-related deal year

Rob Fauber

Yes. thing are well the been our beyond that RMS numbers, teams last great we is has I’d the a together. this cultural but of And important And stuff working really with marriage found add fit. maybe the just kind is

together. bodes assessment think our of ability kind to on integrated for that really risk well I deliver

Operator

follow-up is Your ahead. question a next Please from go Kramm Alex line the UBS. of with

Alex Kramm

else somebody said, in it’s embedded MIS in comment assumption Mark, probably But was I my mid-XXs just helpful. from it’s sort your think growth coming the of know call, original to question I late earlier, some there’s back but that. on

when net if like asked So, may the million more help give about comes specifics impact come to bit can the back $XXX this you I of I little it restructuring the to a earlier, helpful then, clearly. next as be XXXX? how have we should margins thinking our assumptions, growth about incremental would And think own that think we and we in year? about I be MIS as us year

Mark Kaye

I you would to outlook -- appreciate I to intentionally front-run our like Alex, XXXX. ask coming MIS this not revenue back we for into am queue the question.

we committing expense control our also And XX% you the we comfortable modeling I other we we’re management get out, we’ll that’s this control. a are commit as don’t we’re take comfortable to able to approximately assume XXXX what you words, MIS new we’re what think adjusted percentage certainly a for think base. consider And team In what guiding able are is to to I is to and margin to want baseline. as XXXX mid-XXs you at that range. operating that in the least that to

Rob Fauber

say we get Yes. And on don’t hoping want base there’s I that Alex, in I to to that level. just guess, that order to growth would

is strategy. the not -- we So, hope a

having think about a tried really margin can revenue. only without expense way we insight. bit about in that Hopefully, that snapback that get to little that you think huge base gives talking to of So a by the Mark having is to the is we’ve that

Alex Kramm

you. Thank No, very I it much. appreciate

Operator

Please the a Your Manav next ahead. Barclays. line Patnaik question is with of go from follow-up

Manav Patnaik

Yes.

question. I that a Maybe to just complete follow-up can with -- Sorry. follow

get So And the $XXX any million that you I the guess, in margin of [Ph] business? mid-XXs? in savings, regard? to is MA for that connection this Is kind all MIS the in how

Mark Kaye

$XXX at MIS base expense off $XXX will our and the million rate XXXX savings both, run million of least Manav, in MA. or benefit

MA, As we’re expenses. you larger to benefit given infer, the can anticipate the MIS or be you than benefit could probably targeting to how may

how well allocation two being and We’re for very as corporate the expenses. of the base thoughtful manage deliberate we as very the around expense businesses

subscription-based you proportion And revenue mid-XXs track becomes of They margin, an MA medium-term of operating that leverage, the the heard percent about MA for base. primarily that say a product range through think adjusted as on about in way to achieve we as think X I’d as I to, lens it, think to of on our that’s there, revenue total remain increasing within improved proportion years. due And provide I our X the On would recurring sales. propose MA’s operating we this call, especially to margin medium-term adjusted here. this increase

Operator

ahead. follow-up McVeigh go next a Please is with the Your question line from Kevin of Credit Suisse.

Kevin McVeigh

Mark, questions could high. corporate been It call little about that Maybe But a to just Just I of talk for lot There’s there? a if is out your you could a us frame Hey. timing? wonder, debt. kind it little of issuance. on seems bit. own Anything you

Mark Kaye

thanks much Kevin, for very the question.

financial So, And between financial ensuring lowering rating, of we capital. does appropriate cost committed really beyond extend to anchoring a capital allocation. flexibility which our at BBB we leverage management remain ongoing balance provides believe and Moody’s the around plus prudent the

our strong about sheet. liquidity thoughtful well and as are balance levels maintaining We leverage a as

well-laddered rates. capital, flat structuring historically the Over the last our we to maturity our of, was position yield relatively reduced years, take of extending at two a maturity debt curve our capital time, enhanced debt at a and have cost advantage profile and and both low by schedule by

operating income, you’re the range BBB for times that’s this think and and as getting rating Although our plus position. I to of accounting our was that net X.X the September cash within is adjusted debt at, XXth, when point well

uptick to marginally, debt And that’s economic we global improve approximately market marginally, the possibility of outlook. conditions, means in limited very smaller, marginally, to just repurchase seen debt September have take times relative advantage are our position. debt range, sheet gross an and result again, of of of delever direct weakened perhaps as X.X strategy We considering operating our allowing current And that XXth. income the gross adjusted to quarter was the in which our conditions to our first a us and very opportunistically a significantly executing coming months, balance second

Kevin McVeigh

I CapEx That’s on getting the helpful. And for Mark, year? it’s know late, but of then, balance any comments the just

Mark Kaye

Absolutely.

for $XXX expect million. CapEx full XXXX year be to approximately We

customers, our strategic and enhancements the around as with well associated SaaS-based recent future of factors including a KYC a CapEx to our to underpinning of As there developing continued guidance, some RMS for ongoing number our shift IT are as our and solutions our activities, our specifically office acquisition infrastructure reminder, workplace programs. of integration acquisition

not We’re XXXX. guidance providing for

solutions. we XXXX, we to remain do However, currently developing to emphasize continue absolute at to as especially similar foresee dollar levels hosted CapEx

Operator

is Please Your a the Partners. Huber with Research next question follow-up Craig Huber go of line ahead. from

Craig Huber

a your in Thank do also And your further curious what’s bit me on just currency little you. Can on costs. dig now bridge XXXX sensitivity a Mark, you expense favor. attribution? right

Mark Kaye

charges, exclude especially year prudence, range mid-single-digit the in full February, lowering that range. up growth outlook time. that’s these an full assumes full for expense range. fourth XXXX On to been back which the of ongoing the are our that upper mid-single-digit guide percent for outlook from year range of to year high-single-digit additional expanded lower expense just the compared program to and percent at in operating percent restructuring accruals growth And the for $XX to XXXX at expense our the our restructuring-related the end the for spoken we in expenses in outlook, to about. year operating expenses million And guidance have discipline end expense the was the were low-double-digit I increasing demonstrating our quarter the related the If would of we’ve

full points. approximately expense points percentage completed percentage RMS. months. in from partial approximately quarter small X investments, On exchange moves XX should foreign to the And in and XXXX, movements then That a primarily anticipate related net related Craig, you offset favorable there’s last points get your And incentive growth question compensation, X lower ongoing this FX, of FX. your approximately to rates the year to and have cost is flat. of restructuring second efficiencies seen we growth significant Specifically answer. program. the we question, on Approximately for acquisitions to of that X then It’s in just percentage

they by $X.XX neutral $X movement full And full between be so, call basis. year full dollar impacts that the of $X.XX between purposes, year FX revenue by approximately impact if expenses full approximately operating I And were to every and million, update dollar U.S. so million. for the and further pound, $X.XX by and and then million modeling year would year foreign movement the on by an impacts that effectively the EPS euro EPS annualized then revenue will currency $X $XX every movements approximately the then

Operator

is the line follow-up Your go Oppenheimer. ahead. next Please a of with Lau Owen question from

Owen Lau

please there your Reduction you. from Inflation Thank for Could share talk Act about, any me impact program? on in. squeezing is you repurchases the you Thank

Rob Fauber

I at don’t share -- impact, we any expect repo. tax impact material on think least

Operator

line the is ahead. Your a Rosenbaum Please Shlomo next question follow-up from Stifel. of go with

Shlomo Rosenbaum

on you like remarkably resilient. how been there recession, we think Hey of basis? if kind significant just about Rob, Like head revenue into growth in would some we that over wondering, has is MA that should to see start that real component there was would any I a think changes rates we within there? areas a

Rob Fauber

that mission-critical with I MA, organizations Yes. mentioned in that is remarks providing sound they’re it’s products are Shlomo, it know question. been risk. the opening might but it great deal acyclical. because And helping I pretty trite these

basis. really been So, customers customers. value ever. strategy And usage on think of integrated meeting and we I CreditView our of And does risk, resonates help that’s to this say, I offerings I’ve our on increases. with than to it of the in with And resonate, things it more see that times and have a up multidimensional the year-over-year lot perspective stress, a now prop like actually with

customers. We’re our conversations having some with great really

feel we So, that. about good

customer at we take saw we the a much financial consolidations certain time, of banking. bigger the was severe sector, case, proportion had had base about in crisis. obviously, And bankruptcies, a think was that was global you sectors. If like In under banking let’s stress. what pretty some The that MA’s severe downturn, we some

bit the retention sales more talked would little cycles. we about we were that lengthening we time. retention at in exposed that of lose And we before, right did see But tick high some to we down So, rates calls sector also And pretty now. as -- our rates a see are banking could we’ve the customers.

around earlier, to challenging be pricing that see able more things, made discussions, really products pricing, to I what kinds the to that think customers value I’d And thinking say, be we challenging pricing. able communicate driving important ARR of so in is you’re the that, last it’s same be the right so. to the Shlomo into is, that now. would That’s guess but important the as yes, MA like I your thing about others said a to growth environment. not it’s seeing in accelerating support current is back actually in to not point I to this, which times why we’re environment only pretty I are But

Operator

further And at this closing with time, any questions. no Please remarks. continue there are

Rob Fauber

day. you we’ll call. for next thank earnings Have everybody and that, you joining. good questions, talk I With to the the appreciate Okay. on a

Operator

earnings This concludes Moody’s third XXXX quarter call.

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

will immediately you. website. available IR made replay a Moody’s the on Additionally, after be Thank call the

Moody's (MCO) 25 Oct 222022 Q3 Earnings call transcript