4Q and FY 2023 Investor Presentation
The Benefits
of a Moody's
Rating
Investors seek Moody's
opinions and
particularly value the
knowledge of its
analysts and the depth
of Moody's research
S
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Access to capital
» Moody's opinions on credit are used
by institutional investors throughout
the world, making an issuer's debt
potentially more attractive to a
wide range of buyers
» A Moody's rating may facilitate
access to both domestic and
international debt capital
Transparency, credit
comparison and market
stability
» Signals a willingness by issuers to
be transparent and provides
market participants with an
independent assessment against
which to compare creditworthiness
» Moody's ratings and research
reports may help to maintain
investor confidence, especially
during periods of market stress
Responsive to investor
demand
» Moody's is identified as the
agency that best meets future
needs for more than half its users
globally1
1. 2021 Moody's Investor Perception Study.
2. Based on an independent study performed by BDO in
June 2022 on a snapshot of data from January 31, 2022,
which shows that a five-year $500M bond with a Moody's
credit rating (when rated at the same level as S&P and/or
Fitch) has an -13% lower Option Adjusted Spread
(OAS), which results in a savings of ~65 basis points per
year. The study only applied to corporate bonds and not
to sovereign/quasi-sovereign/municipal or structured
finance bonds. Many factors go into the pricing of a bond.
OAS is the measurement of the credit spread of a fixed-
income security rate and the risk-free rate of return
(Treasury yields), adjusted for embedded options.
3. 2022 Moody's Global Intermediary Study conducted by
Naxion.
Planning and budgeting
» May help issuers when formulating internal capital plans and
funding strategies
» An independent study has shown that adding a Moody's credit
rating may lead to a reduction in borrowing costs²
Analytical capabilities
» Among global ratings advisors, Moody's continues to
be held in high regard. Responsiveness, analysts'
seniority/expertise, willingness to have a
dialogue around a credit and increased process
transparency are viewed positively³
Moody's
|
Decode Risk. Unlock Opportunity.
4Q and FY 2023 Investor Presentation
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