Bloomberg News

Moody’s Reaches Six-Year High After Refinancing Needs Report (1)

August 06, 2013

Moody’s Corp. (MCO:US) climbed to the highest level in more than six years after the owner of the second-largest credit rater released a report forecasting corporate borrowers will have “significant” refinancing needs.

Shares rose 2.5 percent to $70.96 in New York trading, the most since June 2007. Non-financial corporate issuers have “significant refunding needs, especially in 2016 and 2017,” New York-based Moody’s said in a slide presentation posted today on its website.

Demand for ratings services has boosted earnings as companies take advantage of borrowing costs that reached a record low last quarter. Yields on corporate bonds fell to an unprecedented 3.09 percent on May 2, according to the Bank of America Merrill Lynch Global Corporate & High Yield Index. Global issuance of $2 trillion in the first six months exceeded offerings for the corresponding period in 2012, when a record $3.98 trillion was sold for the full year, data compiled by Bloomberg show.

Moody’s, whose founder John Moody helped start the credit ratings business in 1909, reported second-quarter revenue (MCO:US) of $537.3 million from grading debt, advancing from $441.2 million in the similar 2012 period, according to data compiled by Bloomberg. Sales from company ratings increased 37 percent to $262.9 million from $191.5 million.

To contact the reporter on this story: Matt Robinson in New York at mrobinson55@bloomberg.net

To contact the editor responsible for this story: Alan Goldstein at agoldstein5@bloomberg.net


Later, Baby
LIMITED-TIME OFFER SUBSCRIBE NOW

(enter your email)
(enter up to 5 email addresses, separated by commas)

Max 250 characters

Companies Mentioned

  • MCO
    (Moody's Corp)
    • $78.85 USD
    • 1.20
    • 1.52%
Market data is delayed at least 15 minutes.
 
blog comments powered by Disqus