Oct 22 (Reuters) - Ratings agency Moody's raised

its annual revenue and profit forecasts on Wednesday, on the

back of strong momentum in its analytics unit and robust bond

issuance activity.

WHY IT'S IMPORTANT

Credit spreads are a crucial gauge of the health of the

corporate sector and play an important role in shaping the bond

issuance environment.

Moody's earnings results are closely watched by market

participants to assess bond market trends given the agency's

wide reach in the global credit markets.

CONTEXT

Bond issuance activity was robust in the reported quarter as

credit spreads remained tight while capital markets and M&A came

back roaring, driving growth in Moody's ratings business.

Private credit has also emerged as an important growth

driver for Moody's ratings business as the asset class plays an

increasingly important role in funding key sectors like data

center, energy, and infrastructure.

BY THE NUMBERS

In the reported quarter, profit attributable to Moody's was

$646 million, or $3.60 per share, compared with $534 million, or

$2.93 per share, a year earlier.

Moody's investors service business, which issues credit

ratings, reported $2 billion in revenue, up 11% from a year

earlier.

The company now expects annual adjusted profit per share

between $14.50 and $14.75, compared with its prior forecast of

$13.50 to $14.00.

Revenue growth is expected to be in high-single-digit

percent range, compared with earlier expectations of

mid-single-digit percent range.

KEY QUOTE

"The power of the Moody's franchise was on full display this

quarter. The investments we've made to capitalize on several

deep currents are paying off," said CEO Rob Fauber.

MARKET REACTION

Shares of the New York-based company rose 1.5% in premarket

trading. The stock has risen 2.4% this year, as of last close.