Moody's profit tops forecast

Source: Exec Digital USA

Date :7/30/2008 4:14:09 AM

Nevertheless, the year-long credit crisis sees Moody’s profit fall 48 percent.

Moody's Corp announced today, July 30, that quarterly profit fell 48 percent as the year-long credit crisis caused demand to shrink for mortgage bonds and collateralized debt obligations.

Second-quarter net income fell to US$135.2million, or 54 cents per share, from US$261.9million, or 95 cents, a year earlier.

Moody's said profit excluding items was 51 cents per share – way above analyst forecasts.

Revenue fell 25 percent to US$487.6million, also topping the forecast.

Moody's expects 2008 profit of US$1.90 to US$2.00 per share, with revenue down by a mid- to high-teens percentage.

Raymond McDaniel, Chairman and Chief Executive Officer of Moody's, said: "Moody's results in the second quarter improved over the previous quarter, although they were well below record prior-year comparables.

"First half results reflect persistently difficult credit market conditions and we remain cautious about recovery in the credit markets for the remainder of 2008.”

Shares of Moody's closed yesterday, July 29, at US$36.15 on the New York Stock Exchange.