From Nasdaq:



The Federal Reserve aggressively raised benchmark interest rates to combat high inflation levels between March 2022 and July 2023, resulting in a slowdown in debt issuance and a decline in revenue for credit ratings businesses like Moody’s. However, with the Fed signaling no further rate hikes in 2024 and potential rate cuts, there may be a resurgence in debt issuance, benefiting companies like Moody’s.

Moody’s suffered a decline in revenue from its credit ratings business due to the tightening financial conditions and interest rate hikes. However, its analytics segment saw sales growth due to rising demand for credit and economics research and solutions.

The potential for rate cuts and a resurgence in debt issuance could boost Moody’s credit ratings segment, driving higher earnings and stock prices. Moody’s, as the second-largest player in the U.S. credit ratings business, has a strong competitive advantage and could benefit from more favorable borrowing conditions.



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