Moody's: The 100-Year-Old Credit Ratings Monopoly with a Growing Analytics Engine

Moody's is a 100-year-old credit rating agency with a duopoly in the market, generating high returns on capital. Its analytics engine, Moody's Analytics, has grown 9% in the first half of 2025, adding to the company's cash generation capabilities. Moody's has a strong presence in global debt markets, with a foothold in South Korea, Japan, Europe, and China. Its ratings are required by regulatory regimes and investment mandates, making it an essential player in global finance.

Moody's, a 100-year-old credit rating agency, has maintained its position as a dominant player in the market, generating substantial returns on capital. In the first half of 2025, Moody's Analytics experienced a 9% growth, further bolstering the company's cash generation capabilities. Moody's has a strong global presence, with significant operations in South Korea, Japan, Europe, and China. Its ratings are crucial for regulatory compliance and investment mandates, making it an essential actor in the global financial landscape.

Recent developments include a lawsuit filed by an Australian regulator against Optus for a 2022 cyberattack [1]. This event underscores the importance of robust cybersecurity measures in the financial sector. Additionally, Brazil has introduced a tariff relief package for export-reliant firms, highlighting the impact of trade policies on businesses [1]. Gildan, a leading apparel company, has acquired Hanesbrands in a deal valued at $4.5 billion, indicating consolidation in the retail sector [1].

Moody's has also recognized Ryan Specialty, LLC, a provider of specialty insurance solutions, with an upgrade to its credit ratings. Ryan Specialty's corporate family rating was elevated to Ba3 from B1, reflecting the company's improved market position and financial profile [2]. This upgrade underscores Moody's confidence in Ryan Specialty's ability to navigate the specialty insurance market, despite challenges such as high financial leverage and integration risks from acquisitions.

In the broader financial market, Moody's notes that US policy shifts will heighten global financial risks over the next 12 months. As tariff effects filter through the global economy and corporate earnings, certain asset classes, particularly those with high valuations, face repricing risks [1]. The global corporate default count has fallen again in July, with Moody's forecasting a decline in the 2025 default rate [1].

Moody's also highlights the growth of data centers in the Asia-Pacific region, driven by the AI boom. Data center capacity is expected to surge through 2030, requiring significant investment [1]. Despite environmental constraints, the strategic importance of onshore data storage will drive growth and mitigate related credit risks.

Moody's continues to innovate, with its GenAI-powered solutions recognized as the best credit risk solution provider by Waters Rankings [1]. These advancements underscore Moody's commitment to leveraging technology to enhance its credit analysis capabilities.

Moody's RMS™ Global Event Response provides deep insights for real-time event preparation and response, offering parametric insurance contracts triggers, validation against experience, and research capabilities [1]. This tool is crucial for navigating the complexities of the global financial market.

In conclusion, Moody's remains a pivotal player in the global financial landscape, with a strong track record of innovation and a commitment to delivering high-quality credit risk solutions. As the financial market continues to evolve, Moody's is well-positioned to navigate the challenges and opportunities that lie ahead.

References:
[1] https://www.moodys.com/
[2] https://www.reinsurancene.ws/moodys-raises-ryan-specialtys-credit-ratings-outlook-revised-to-stable/