July 23 (Reuters) - Ratings agency Moody's reported a
rise in second quarter profit on Wednesday, driven by robust
gains in its data and analytics unit and an increase in
government borrowing.
Demand for market analytical tools rose in the reported
quarter as investors sought health checks on Treasury debt
issuance amid trade policy and interest rate uncertainties,
boosting companies like Moody's.
Revenue from the analytics segment, which chiefly depends on
a subscription model, climbed 11% to $888 million in the second
quarter.
Moody's results are closely watched by traders as a
reliable indicator of market sentiment toward debt, given the
agency's broad influence across global fixed-income markets.
The company's Investors Service business, which issues
credit ratings, generated $1 billion in revenue, matching last
year's figure.
Profit attributable to Moody's totalled $578 million, or
$3.21 per share, in the three months ended June 30, compared
with $552 million, or $3.02 per share, a year earlier.
The company narrowed its annual adjusted earnings per share
forecast to a range of $13.50 to $14, a slight upgrade from its
previous outlook of $13.25 to $14 per share.
Moody's shares, which have gained nearly 5% so far in 2025,
were down marginally in pre-market trading.