Moody's Acquires Majority Stake in MERIS Ratings

Moody's Corp, a leading financial notation group, is acquiring a majority stake in MERIS Ratings to expand its services. The acquisition will enhance Moody's offerings in financial notation services, analysis, and risk management services. The deal is expected to strengthen Moody's position as a global leader in financial notation and risk management.

Moody's Corp (NYSE: MCO), a leading financial notation group, has announced plans to secure a majority equity stake in Middle East Rating & Investors Service (MERIS). The acquisition aims to expand Moody's services, particularly in financial notation, analysis, and risk management. This strategic move is expected to bolster Moody's position as a global leader in financial notation and risk management.

MERIS, an affiliate of Moody's, is a domestic credit rating agency based in Egypt. Established in 2003 as a joint venture between Moody's and FinBi, MERIS has been a pioneer in Egypt's domestic capital markets, providing national-scale credit ratings for various sectors including financial institutions, corporates, and structured finance transactions.

The transaction, subject to regulatory approvals, will see Moody's deepen its presence in the Middle East and Africa. Monica Merli, Chief Operating Officer of Moody’s Ratings, expressed excitement about the partnership, stating, "We are excited to strengthen our relationship with MERIS, which has been an important provider of domestic credit ratings in Egypt for over two decades." Dr. Amr Hassanein, Managing Director and Founder of MERIS, also noted the significance of the deal, saying, "Today marks an important milestone in MERIS’s history. By deepening our association with Moody’s global network and leveraging its expertise alongside our established local presence, we can further enhance our offerings and contribute to the continued growth and development of Egypt’s financial markets."

Following the acquisition, MERIS will continue to operate as an independent affiliate of Moody’s, developing its own rating methodologies, issuing its own credit ratings, and maintaining a separate management team. The terms of the transaction were not disclosed.

This acquisition is part of Moody's broader strategy to expand its global footprint and enhance its service offerings. The move is expected to provide Moody's with a more comprehensive view of the Middle East and African markets, enabling it to offer more tailored and effective risk management solutions to its clients.

References:
[1] https://finance.yahoo.com/news/moody-increase-ownership-meris-ratings-120000878.html
[2] https://www.quiverquant.com/news/Willis+Expands+Corporate+Risk+%26+Broking+Team+in+Japan+to+Enhance+Client+Service+and+Expertise