Moody's Acquires Majority Stake in MERIS Ratings, Strengthening Presence in Middle East and Africa

Moody's plans to acquire a majority stake in MERIS Ratings in Egypt, expanding its presence in the Middle East and Africa. The acquisition reflects Moody's commitment to enhancing local capital markets with global best practices. MERIS will maintain its independence in operations, pending regulatory approvals.

Moody’s Corporation (NYSE:MCO) has announced its intention to secure a majority equity stake in Middle East Rating & Investors Service (MERIS), a domestic credit rating agency in Egypt. This move signifies a significant expansion of Moody’s presence in the Middle East and Africa, reflecting its commitment to enhancing local capital markets with global best practices [1].

The transaction, which builds on a longstanding relationship between Moody’s and MERIS, is subject to regulatory approvals. 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.

“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,” said Monica Merli, Chief Operating Officer of Moody’s Ratings. “We look forward to further sharing Moody’s global best practices with MERIS as its experienced team and trusted local insights continue to serve market participants in Egypt” [1].

MERIS was founded in 2003 as a joint venture between Moody's and FinBi, a local Egyptian consulting firm. It provides national-scale credit ratings for a diverse range of sectors, including financial institutions, corporates, and structured finance transactions. Dr. Amr Hassanein, Managing Director and Founder of MERIS, expressed his optimism about the transaction, stating, “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” [1].

The acquisition is part of Moody’s broader strategy to deepen its presence in emerging markets, particularly in the Middle East and Africa. This region is becoming increasingly important for global financial markets, and Moody’s aims to play a more significant role in supporting its development.

Investors should monitor the regulatory approval process for this transaction, as it could provide insights into Moody’s commitment to local market development and its potential impact on the global financial landscape.

References:
[1] https://www.morningstar.com/news/business-wire/20250825968647/moodys-to-increase-ownership-in-meris-ratings-deepening-presence-in-the-middle-east-and-africa