Moody’s Corporation or Moody’s is an American financial services company founded by John Moody in 1901. It is the holding company for Moody’s Analytic, an American provider of software, services, financial analysis, and Moody’s Investor Service, an American credit rating agency. Initially it was found to produce guidebooks of data related to bonds, bonds rating and stock. In 1962, Moody’s was picked up by Dun & Bradstreet. In 2007, it was divided into two operating divisions, Moody’s Analytics and Moody’s Investors Service.
Moody’s Investors Service is an American credit rating agency of Moody’s Corporation which signifies company’s regular line of trade and its historic name. It rate wide range of debt securities related to commercial and public securities in bond market. These include corporate, municipal and government bonds and managed investments such as fixed income funds, money market funds and hedge funds and financial institutions such as banks and non-banks companies.
The Fitch Group and Standard & Poor’s are two main competitors of Moody’s Investors Services. Together they are refer as Big Three credit rating agencies. These Big Three plays an important role in an international capital markets as an add-on credit analysis provider for financial institutions and banks in measuring the credit risk of specific securities.
Moody’s Analytics is second division of Moody’s Corporation formed in 2007 to emphasis on non-rating actions. Moody’s Analytics provide research on financial modeling, performance management, credit analysis, financial risk management and structured analysis. It also provide counseling services, software tools, economic models and professional training for financial service sectors.
In late 1990’s and 2000’s though acquisitions and partnership Moody’s Analytics expands its capabilities and client base. The acquisitions include Economy.com, KMV, Wall Street Analytics, Enb Consulting Ltd, Fermat International, Bureau van Dijk, CSI Global Education Inc. and the Institute of Risk Standards and Qualifications.
In 2019, Moody’s Corporation purchases major shares of California based climate change firm, the Four Twenty Seven. The acquisition indicate that climate change can intimidate the credit value of companies and governments globally.