Moody's: Q1, Analytics Strength Offsets Weaker Debt Issuance Outlook (Rating Upgrade)

  • Moody's Corporation reported strong Q1 2025 earnings, with revenue and EPS exceeding expectations, driven by robust performance in ratings. Despite trimming FY 2025 guidance due to macroeconomic uncertainties, Moody's valuation has become more attractive at a price-to-cash flow of 31.2x. Risks include potential declines in credit issuances and slower up-sells from new AI products, but Moody's strong market position and recurrent revenue provide resilience.