Moody's Analytics
{{Short description|Analytics and financial services company}}
{{Use mdy dates|date=January 2019}}
{{Use American English|date=January 2019}}
{{Infobox company
| name = Moody's
| logo = Moody's new logo.png
| former_name = Moody's Analytics (2007–2024)
| type = Subsidiary
| foundation = {{Sda|2007}}
| location_city = 7 World Trade Center
New York City, New York
| location_country = United States
| industry = Financial services
| products =
| services = Credit analysis, Financial risk management
| revenue = $3.6 billion
| operating_income =
| net_income =
| aum =
| assets =
| equity =
| owner =
| num_employees = 10,600
| parent = Moody's Corporation
| divisions =
| subsid =
| homepage = {{URL|http://moodysanalytics.com}}
| intl =
}}
Moody's, previously known as Moody's Analytics, is a subsidiary of Moody's Corporation established in 2007 to focus on non-rating activities, separate from Moody's Investors Service. It provides economic research regarding risk, performance and financial modeling, as well as consulting, training and software services. Moody's is composed of divisions such as Moody's KMV, Moody's Economy.com, Moody's Wall Street Analytics, the Institute of Risk Standards and Qualifications, and Canadian Securities Institute Global Education Inc.
History
In 1995, Moody's Corporation started a business unit providing quantitative analysis services, including credit risk assessment software and services after acquiring Financial Proformas, Inc.,Personal Experience in both companies called Moody's Risk Management Service (MRMS).{{cite book |title=The New Masters of Capital: American Bond Rating Agencies and the Politics of Creditworthiness |last=Sinclair |first=Timothy J. |author-link=Timothy J. Sinclair |year=2005 |publisher=Cornell University Press |location=Ithaca, New York |isbn=978-0-8014-7491-0 |url=http://www.cornellpress.cornell.edu/book/?GCOI=80140100511490 |accessdate=30 August 2011}}{{cite news |title=Moody's blues |author=Louise Bowman |url=http://www.airfinancejournal.com/Article/2051700/Search/Results/Moodys-blues.html |magazine=Airfinance Journal |date=November 2000 |accessdate=30 August 2011}}
In early 2000 Moody's acquired the Software Products Group of Crowe, Chizek & Co., then the eighth-largest accounting and consulting firm in the U.S.,{{cite news |title=Moody's aims to turn former Crowe, Chizek unit into global business |author=Paul Dodson |newspaper=South Bend Tribune |date=20 February 2000}} which brought software used by banks to analyze the risk in taking on commercial loans.{{cite news |author=Charles Keenan |date=28 January 2000 |title=Moody's Acquires Commercial Loan Software Operation |url=https://www.americanbanker.com/news/moodys-acquires-commercial-loan-software-operation |newspaper=The American Banker}} The same year, MRMS partnered with RiskMetrics to develop software that combined credit risk analysis with portfolio management.
In February 2002, Moody's purchased KMV (Kealhofer, McQuown and Vasicek), a San Francisco-based quantitative risk management firm, and merged it with MRMS to create Moody's KMV.{{cite news |author=Aaron T. Smith |date=12 February 2002 |title=Mergers & Acquisitions: Moody's to Buy Credit Risk Analyzer KMV for $210 Million |url=https://www.bondbuyer.com/news/mergers-acquisitions-moodys-to-buy-credit-risk-analyzer-kmv-for-210-million |newspaper=The Bond Buyer}} The company acquired KMV's clients and its software tool for calculating the probability of credit default, here returning the EDF, or "Expected Default Frequency"; see KMV model. Moody's KMV integrated financial modeling software from each former company and, in 2003, debuted its credit risk management system, Credit Monitor.{{cite news |title=Moody's KMV Integrates RiskCalc with Credit Monitor |author=Christopher Faille |author-link=Christopher Faille |newspaper=HedgeWorld Daily News |date=24 July 2003}}
In 2005, Moody's acquired Economy.com, an economics research and analytics firm based in West Chester, Pennsylvania, adding services related to economic and demographic research, country analysis, and data on industrial, financial and regional markets.{{cite web|url=http://www.allbusiness.com/legal/856708-1.html |title=Moody's Acquires Economy.com |date=1 December 2005 |work=Allbusiness.com |accessdate=30 August 2011 |url-status=dead |archive-url=https://web.archive.org/web/20110511232808/http://www.allbusiness.com/legal/856708-1.html |archive-date=May 11, 2011 }}
The following year, in December 2006 the firm acquired Wall Street Analytics, a San Francisco-based financial analysis and monitoring software developer founded by Ron Unz,{{cite web|url=http://www.allbusiness.com/finance/business-loans-business-credit/4020182-1.html |title=Moody's Corporation Acquires Wall Street Analytics |date=18 December 2006 |work=Allbusiness.com |accessdate=30 August 2011 |url-status=dead |archive-url=https://web.archive.org/web/20110511232802/http://www.allbusiness.com/finance/business-loans-business-credit/4020182-1.html |archive-date=May 11, 2011 }}
which then became Moody's Wall Street Analytics.{{cite news |title=Moody's acquires Wall Street Analytics for undisclosed sum |agency=The Associated Press |date=18 December 2006}} The acquisition brought with it software for financial risk management, including CDOnet, a tool for collateralized debt obligation (CDO) valuation.{{cite news |title=Risk Management: Wall Street Analytics Unveils New CDO Valuation Tool. |author=Suzanne Walker |newspaper=The Bond Buyer |date=9 December 2003}}
In August 2007, Moody's Corporation created a new division for its combined non-ratings businesses, Moody's Analytics, to operate separately from Moody's Investors Service.{{cite news |title=Moody's Corp. Divides Itself, Creates Non-Ratings Analytics Company. |author=Matthew Hanson |newspaper=The Bond Buyer |date=8 August 2007 |page=3}} Subsidiary companies that make up Moody's Analytics today include Moody's KMV, Economy.com, Wall Street Analytics, Fermat International, Enb Consulting Ltd., and, most recently, CSI Global Education Inc. The division began operations with Moody's KMV, Economy.com and Wall Street Analytics, and other subsidiary companies were added to Moody's Analytics through later acquisitions.
In 2008, Moody's Analytics acquired Fermat International,{{cite news |title=Moody's Analytics to Acquire Fermat International |url=http://www.streetinsider.com/Mergers+and+Acquisitions/Moody%E2%80%99s+%28MCO%29+to+Acquire+Fermat+International+for+$189+Million+Plus+Considerations%3B+Sees+Deal+Dilutive+Through+2009/3987962.html |work=StreetInsider.com |date=15 September 2008 |accessdate=26 August 2011}} a Brussels-based provider of software for financial risk and performance management in the banking sector,{{cite news |title=Moody's to acquire risk management software firm |author=David Roisen |newspaper=SNL Kagan Media & Communications Report |date=16 September 2008}}{{cite news |title=Moody's Corporation acquires Fermat International |newspaper=Financial Deals Tracker |date=14 October 2008}}{{cite news |title=Moody's bags Fermat |author=Carolyn Murphy |newspaper=Daily Deal/The Deal |date=16 September 2008}} used by over 100 banks across 30 countries in Europe, the Middle East and Asia.
In December 2008, Moody's Analytics added Enb Consulting Ltd., a provider of professional training and career services in the financial sector based in Surrey, England, to Moody's Analytics Training Services.{{cite news |title=Moody's unit acquires Enb Consulting |author=Taigh Khan |newspaper=SNL Kagan Media & Communications Report |date=22 December 2008}} Its services include technical and soft skills training programs for banking and capital markets professionals.{{cite press release |title=Moody's Analytics Acquires Enb Consulting |publisher=Moody's Corporation |date=18 December 2009 |url=http://www.businesswire.com/news/home/20081218005238/en/Moodys-Analytics-Acquires-Enb-Consulting |accessdate=30 August 2011}}
Moody's Analytics further added to its training services in November 2010, when it acquired Canadian Securities Institute Global Education Inc. (CSI), a provider of training and certification for the financial sector, best known for its introductory course to stocks and bonds, the Canadian Securities Course, which is mandatory for Canadian licensed investment advisers.{{cite news |title=Moody's Corp. Buys CSI Global Education |newspaper=Professional Services Close-Up |date=26 November 2010}}
In June 2010, Moody's Analytics formed a strategic alliance with Experian to provide software for financial institutions to manage consumer loan portfolios. The first product provided by the companies was Moody's CreditCycle Plus, a tool to forecast potential losses and provide stress testing of loan portfolios.{{cite news |title=Experian and Moody's Analytics partner to offer consumer credit loss-forecasting and stress-testing product |magazine=Mortgage Banking |date=June 2010}}
In March 2011 Moody's Analytics announced the release of a software program developed by Moody's Research Labs, the Mortgage Portfolio Analyzer, to assist portfolio managers in managing credit risk.{{cite press release |title=Moody's Analytics Launches Mortgage Portfolio Analyzer (MPA) |url=http://www.thestreet.com/story/11035415/1/moody8217s-analytics-launches-mortgage-portfolio-analyzer-mpa.html |publisher=Business Wire |date=8 March 2011 |accessdate=30 August 2011 |archive-url=https://web.archive.org/web/20180919114643/https://www.thestreet.com/story/11035415/1/moody8217s-analytics-launches-mortgage-portfolio-analyzer-mpa.html |archive-date=September 19, 2018 |url-status=dead }}
In November 2011, Moody's Corporation acquired a major stake in Copal Partners, providers of outsourced research and analytical services to institutional customers. This acquisition extends the research, data, software and training services offered by Moody's Analytics.[http://ir.moodys.com/releasedetail.cfm?releaseid=623439 “Moody's Corporation Acquires Majority Stake in Copal Partners”] {{webarchive|url=https://web.archive.org/web/20120617052420/http://ir.moodys.com/releasedetail.cfm?ReleaseID=623439 |date=2012-06-17 }} ir.moodys.com. Moody’s Corporation. Retrieved 21 February 2013.
In December 2011, Moody's Corporation added Barrie & Hibbert Limited, a provider of risk management modeling tools for insurance companies, to Moody's Analytics enterprise risk management services in a deal worth £50,000,000.[http://ir.moodys.com/releasedetail.cfm?releaseid=634129 “Moody's Corporation Acquires Barrie & Hibbert”] {{webarchive|url=https://web.archive.org/web/20120617053102/http://ir.moodys.com/releasedetail.cfm?ReleaseID=634129 |date=2012-06-17 }} ir.moodys.com. Moody’s Corporation. Retrieved 21 February 2013.
In December 2013, Moody's acquired Amba Investment Services, a provider of investment research and quantitative analytics for global financial institutions.[http://ir.moodys.com/releasedetail.cfm?ReleaseID=813117 “Moody's Acquires Amba Investment Services”] {{webarchive|url=https://web.archive.org/web/20131216190329/http://ir.moodys.com/releasedetail.cfm?ReleaseID=813117 |date=2013-12-16 }} ir.moodys.com. Moody’s Corporation. Retrieved 16 December 2013.
In October 2014, Moody's acquired Lewtan, a provider to members of the global asset-securitization industry.{{cite web|title=About|url=http://www.lewtan.com/about/index.html|publisher=Lewtab|access-date=October 28, 2015|archive-url=https://web.archive.org/web/20151107235045/http://www.lewtan.com/about/index.html|archive-date=November 7, 2015|url-status=dead}}
In December 2016, Copal Amba, formerly a Moody's Analytics subsidiary, was merged with Moody's Analytics to form Moody's Analytics' Knowledge Services unit.{{cite web|url=http://www.maknowledgeservices.com/copal-amba-announces-name-change-to-moodys-analytics/|title=Copal Amba Announces Name Change to Moody's Analytics|publisher=Moody's Analytics|accessdate=12 December 2016}}
Mark Almeida has been president of Moody's Analytics since January 2008 until October 2019.{{cite web|url=http://www.moodysanalytics.com/About-Us/Leadership-Team.aspx|title=Leadership Team|publisher=Moody's Analytics|accessdate=6 May 2013}} In October 2017, SBI collaborated with Moody's Analytics to train staffs.{{Cite web|url=http://www.moneycontrol.com/news/business/companies/loan-appraisalsbi-partners-moodys-analytics-to-train-staff-2409569.html|title=Loan appraisal:SBI partners Moody's Analytics to train staff|website=Moneycontrol|date=October 10, 2017 |language=en-US|access-date=2017-11-17}}
Moody's Analytics acquired Bureau van Dijk in 2017.{{Cite web|url=https://ir.moodys.com/press-releases/news-details/2017/Moodys-Completes-Acquisition-of-Bureau-van-Dijk/default.aspx|title=Moody's Completes Acquisition of Bureau van Dijk|date=November 20, 2022}}
In November 2017, the Department of Justice charged three Chinese employees of Guangzhou Bo Yu Information Technology Company Limited with hacking into corporate entities in the United States, including Moody's Analytics.{{cite news |url=https://www.justice.gov/opa/pr/us-charges-three-chinese-hackers-who-work-internet-security-firm-hacking-three-corporations |title=U.S. Charges Three Chinese Hackers Who Work at Internet Security Firm for Hacking Three Corporations for Commercial Advantage |publisher=United States Department of Justice |author=Department of Justice, Office of Public Affairs |date=November 27, 2017 }}
Moody's Analytics acquired Cortera in 2021.{{Cite web| title = Moody's to Acquire Cortera, a Leader in Credit Data and Insights| accessdate = 2021-08-08| url = https://ir.moodys.com/press-releases/news-details/2021/Moodys-to-Acquire-Cortera-a-Leader-in-Credit-Data-and-Insights/default.aspx}}
Moody's Analytics acquired kompany in 2021.{{Cite web| title = Moody's Acquires PassFort and Agrees to Acquire kompany, Expanding KYC and Compliance Capabilities| accessdate = 2022-07-12| url = https://ir.moodys.com/press-releases/news-details/2021/Moodys-Acquires-PassFort-and-Agrees-to-Acquire-kompany-Expanding-KYC-and-Compliance-Capabilities/default.aspx}}
On 6 March 2024, Moody's Analytics was renamed to just "Moody's".{{Cite news |last=Clanton |first=Alicia |date=6 March 2024 |title=Moody’s Investors Service Sheds Century-Old Name in Rebrand |url=https://www.bloomberg.com/news/articles/2024-03-06/moody-s-investors-service-sheds-century-old-name-in-rebrand?srnd=markets-vp |url-access=subscription |archive-url=https://archive.today/20240307032932/https://www.bloomberg.com/news/articles/2024-03-06/moody-s-investors-service-sheds-century-old-name-in-rebrand |archive-date=7 March 2024 |access-date=7 March 2024 |work=Bloomberg}}
Products and services
Moody's products include Market Implied Ratings (MIR) and Expected Default Frequency (EDF) software packages. MIR applies Moody's ratings scale to credit and equity market price signals so users can identify investment opportunities; EDF estimates a company's credit default probability based on quantitative factors including market capitalization, equity, volatility and capital structure.{{cite web |url=http://ir.moodys.com/overview.cfm |title=Moody's Corporation Investor Relations |work=ir.moodys.com |publisher=Moody's Corporation |accessdate=30 August 2011 |url-status=dead |archive-url=https://archive.today/20130129001036/http://ir.moodys.com/overview.cfm |archive-date=29 January 2013 }} The division also provides financial institutions with analytical and risk management software, including its RiskAnalyst credit risk management software, which is used to provide analysis of credit data for commercial loans and to calculate risk.{{cite news |title=Moody's Analytics Acquires Commercial Mortgage Modeling Software |author=Penny Crosman |url=http://www.informationweek.com/news/222301691 |work=InformationWeek |date=20 January 2010 |accessdate=29 August 2011}}
References
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Category:American companies established in 2007
Category:Financial software companies
Category:Macroeconomics consulting firms
Category:Multinational companies
Category:Financial services companies based in New York City
Category:Financial technology companies
Category:Research and analysis firms of the United States