Moody’s Bank Expectations

November 17, 2010 by · Leave a Comment
Filed under: Financial Reform, The Rating Agencies 

Moody’s Corporation, one of the beleaguered credit rating agencies, posted unexpected gains. In a statement, Moody’s reports that net income had climbed to $121 million, or 51 cents a share, from $109.3 million, or 46 cents, a year earlier.

The increase was driven by vibrant U.S. ratings services. Revenue grew 5.9 percent and was up 19% from the year-earlier period.

These gains were achieved while Moody’s was warning about their future vitality if the then-pending U.S. financial-regulation overhaul would pass and eliminate credit-rating companies’ shield from lawsuits.

Since passage of the Dodd-Frank bill, Moody’s has maintained its full year target earnings per share of $1.75 to $1.85; however, operating expenses and compliance costs related to regulatory changes are expected to increase.

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