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3Q 2019 Investor Presentation

November 4, 2019

November 4, 2019 2

Disclaimer

Certain statements contained in this release are forward-looking statements and are based on future expectations, plans and prospects for the Company’s business and operations

that involve a number of risks and uncertainties. Such statements may include, among other words, “believe”, “expect”, “anticipate”, “intend”, “plan”, “will”, “predict”, “potential”,

“continue”, “strategy”, “aspire”, “target”, “forecast”, “project”, “estimate”, “should”, “could”, “may” and similar expressions or words and variations thereof that convey the prospective

nature of events or outcomes generally indicative of forward-looking statements. The forward-looking statements and other information in this release are made as of the date hereof

(except where noted otherwise), and the Company undertakes no obligation (nor does it intend) to publicly supplement, update or revise such statements on a going-forward basis,

whether as a result of subsequent developments, changed expectations or otherwise, except as required by applicable law or regulation. In connection with the “safe harbor”

provisions of the Private Securities Litigation Reform Act of 1995, the Company is identifying examples of factors, risks and uncertainties that could cause actual results to differ,

perhaps materially, from those indicated by these forward-looking statements. Those factors, risks and uncertainties include, but are not limited to, credit market disruptions or

economic slowdowns, which could affect the volume of debt and other securities issued in domestic and/or global capital markets; other matters that could affect the volume of debt

and other securities issued in domestic and/or global capital markets, including regulation, credit quality concerns, changes in interest rates and other volatility in the financial markets

such as that due to uncertainty as companies transition away from LIBOR and the U.K.’s pending withdrawal from the EU; the level of merger and acquisition activity in the U.S. and

abroad; the uncertain effectiveness and possible collateral consequences of U.S. and foreign government actions affecting credit markets, international trade and economic policy,

including those related to tariffs and trade barriers; concerns in the marketplace affecting our credibility or otherwise affecting market perceptions of the integrity or utility of

independent credit agency ratings; the introduction of competing products or technologies by other companies; pricing pressure from competitors and/or customers; the level of

success of new product development and global expansion; the impact of regulation as an NRSRO, the potential for new U.S., state and local legislation and regulations, including

provisions in the Dodd-Frank Wall Street Reform and Consumer Protection Act (“Dodd-Frank”) and regulations resulting from Dodd-Frank; the potential for increased competition and

regulation in the EU and other foreign jurisdictions; exposure to litigation related to our rating opinions, as well as any other litigation, government and regulatory proceedings,

investigations and inquires to which the Company may be subject from time to time; provisions in the Dodd-Frank legislation modifying the pleading standards, and EU regulations

modifying the liability standards, applicable to credit rating agencies in a manner adverse to credit rating agencies; provisions of EU regulations imposing additional procedural and

substantive requirements on the pricing of services and the expansion of supervisory remit to include non-EU ratings used for regulatory purposes; the possible loss of key

employees; failures or malfunctions of our operations and infrastructure; any vulnerabilities to cyber threats or other cybersecurity concerns; the outcome of any review by controlling

tax authorities of the Company’s global tax planning initiatives; exposure to potential criminal sanctions or civil remedies if the Company fails to comply with foreign and U.S. laws and

regulations that are applicable in the jurisdictions in which the Company operates, including data protection and privacy laws, sanctions laws, anti-corruption laws, and local laws

prohibiting corrupt payments to government officials; the impact of mergers, acquisitions or other business combinations and the ability of the Company to successfully integrate such

acquired businesses; currency and foreign exchange volatility; the level of future cash flows; the levels of capital investments; and a decline in the demand for credit risk management

tools by financial institutions. These factors, risks and uncertainties as well as other risks and uncertainties that could cause Moody’s actual results to differ materially from those

contemplated, expressed, projected, anticipated or implied in the forward-looking statements are described in greater detail under “Risk Factors” in Part I, Item 1A of the Company’s

annual report on Form 10-K for the year ended December 31, 2018, and in other filings made by the Company from time to time with the SEC or in materials incorporated herein or

therein. Stockholders and investors are cautioned that the occurrence of any of these factors, risks and uncertainties may cause the Company’s actual results to differ materially from

those contemplated, expressed, projected, anticipated or implied in the forward-looking statements, which could have a material and adverse effect on the Company’s business,

results of operations and financial condition. New factors may emerge from time to time, and it is not possible for the Company to predict new factors, nor can the Company assess

the potential effect of any new factors on it.

November 4, 2019 3

Table of Contents

1. Moody’s Overview

2. Financial Overview

3. Capital Markets Overview

4. Moody’s Investors Service (MIS)

5. Moody’s Analytics (MA)

6. Appendix

1 Moody’s Overview

November 4, 2019 5

Provides financial

intelligence and analytical

tools supporting our clients’

growth, efficiency and risk

management objectives

Solutions address diverse

needs and customers

Extending brand into new

markets and deepening

customer relationship

Leading global provider of

credit rating opinions,

insight and tools for

financial risk measurement

and management

Independent provider of

credit rating opinions and

related information for over

100 years

Proven ratings accuracy

and deeply experienced

analysts

Expanded sales and

marketing activities in

Commercial group

Revenue of

$4.7 billion

Adjusted

Operating Income

of $2.2 billion

MIS

76%

MA

24%MIS

59%

MA

41%

Note: Financial data for the trailing twelve months ended September 30, 2019.

Company Overview

Adjusted

Operating Margin

MIS

57.9%

MA

28.3%

November 4, 2019 6

Moody’s Strategic Core

Purpose

Clarity, knowledge

and fairness

Vision

Informed decisions that

promote progress

Mission

Trusted insights and

standards

November 4, 2019 7

Moody’s Strategic Priorities

Enhance technology infrastructure to enable automation, innovation and efficiency

Foster employee engagement and creative solutions through our diverse workforce

and inclusive environment

Private Co.

Data / SME

Business Adjacencies

ESG Cyber RiskCommercial

Real Estate

Emerging

Markets

Private Co.

Data / SME

Regional Expansion

Credit Pyramid

Asia-

Pacific

Latin

AmericaEMEA

November 4, 2019 8

Enhancing Regional Presence…

» CCXI maintains its leadership

position in the domestic ratings market,

with 1,700 rated customers and ~40%

issuance coverage

» We are continuing to collaborate with

CCXI on opportunities to leverage and

enhance CCXI’s strong domestic

market position and thought leadership

» Minority investment in SynTao Green

Finance, a leading provider of ESG

data, tools and solutions based in,

and serving, China

» Launched Moody’s Local, a new platform that

provides domestic ratings and research in

Peru, Panama and Bolivia1

» Regional domestic market expansion

continues

China Latin America

1. Subject to regulatory approvals. Moody’s Local ratings represent forward-looking rank-orderings of creditworthiness within the domestic market of a specific country. They are not

comparable between countries, and are distinct from and independent of the opinions of MIS and its global ratings.

November 4, 2019 9

… and Adding New Product Capabilities

» Award-winning PFaroe platform: a leading

solution for asset managers and pension plan

sponsors, supporting over 3,000 plans and

more than $1.4 trillion in assets

» Complete rebuild of popular risk platform

» Streamlines know-your-customer, anti-money

laundering, and anti-bribery and corruption

research

» Used data and

analytics from Four

Twenty Seven to

analyze U.S. local

government heat

stress exposure and

credit risk

» Software platform used by issuers and

trustees for administering and reporting on

asset-backed and mortgage-backed securities

programs

November 4, 2019 10

Why Invest in Moody’s?

We strive to be the world’s

most respected authority

serving risk-sensitive

financial markets

We have had strong

revenue and earnings

growth, as well as cash

flow conversion

We are committed to

returning capital to

our stockholders

We will selectively

invest in strategic

growth opportunities

November 4, 2019 11

ESG Drives Sustained Corporate ValueIntroduced ESG Disclosures in our Public Filings

1. Carbon Disclosure Project.

2. While the Company reports its financial results in accordance with GAAP, financial performance targets and results under the Company’s incentive plans are based on adjusted financial

measures. These metrics and the related performance targets are relevant only to Moody’s executive compensation program and should not be used or applied in other contexts.

3. This measure is a qualitative assessment of strategic and operational metrics tied to key non-financial business objectives certified by the Compensation & Human Resources Committee at

the beginning of the performance period. The Committee assessed the achievement of the metric by evaluating performance against the following objectives: (i) new sources of growth; (ii)

quality assurance and controls; (iii) operating effectiveness and efficiency; (iv) people and culture; (v) risk management; and (vi) enabling technologies and capabilities.

Executive compensation metrics include2:

» Moody’s Corporation EPS, operating income and EBITDA

» MIS operating income and ratings accuracy

» MA operating income and sales

» Strategic & operational3

E N V I R O NM E N TAL

» Measurement of carbon

emissions and identification

of opportunities to reduce

indirect GHG emissions

» Expansion of ESG

products and services

» CDP1 participation

S O C I AL

» Support a diverse

and inclusive workplace

» Active global community

and philanthropic involvement

» Robust data security

and privacy practices

» Fair compensation practices and benefits packages

» Recognized by Working Mother’s list of 100 Best

Companies

G O V E R N AN C E

» Professional integrity

» Systematic risk management

» Diverse Board membership

and skill sets

» Separate CEO and

Chairman positions

» Active shareholder

engagement

November 4, 2019 12

Furthering our Commitment to a Sustainable Future

» Highlighting sections of the 2018 CSR Report and Moody’s other public disclosures that

include information consistent with SASB’s objectives

» Our inaugural SASB Index is now available at moodys.com/csr

» FTSE Russell confirms that Moody’s has, for the first time, been independently assessed

according to the FTSE4Good criteria

» Satisfied the requirements to become a constituent of the FTSE4Good Index Series

» Senior management participated in UN Global Compact events related to ESG

» MIS, in partnership with the Climate Bond Initiative, hosted a briefing on carbon transition and

the financial tools deployed to facilitate it with a keynote by CEO and President of Ceres

» Announced Pathway to Prosperity, a financial empowerment initiative for the nation's largest

small business assistance network, America's Small Business Development Centers (SBDCs)

» Hosted ESG Conference in London together with Vigeo Eiris and Four Twenty Seven,

where key industry figures will share their insights on important ESG themes and the impact

on global credit markets

https://csr.moodys.io/

2 Financial Overview

November 4, 2019 14

Long-Term Growth Opportunities

Three Levers to Achieve EPS Growth

Note: Long-term growth opportunities presented on this slide are on average over time.

1. Assumes no material change in effective tax rate, foreign exchange rates, leverage profile and/or capital allocation policy.

2. Subject to market conditions and other ongoing capital allocation decisions.

November 4, 2019 15

$2.3 $2.3 $2.4 $2.8 $2.7

$1.1 $1.2 $1.2$1.4 $1.7

$0.0

$1.0

$2.0

$3.0

$4.0

$5.0

$6.0

2014 2015 2016 2017 2018 2019F

$ B

illio

ns

MIS Revenue MA Revenue

$3.3 $3.5 $3.6$4.2 $4.4

$1,003 $1,109 $1,144

$664

$1,371

$1,600 - $1,700

$500

$700

$900

$1,100

$1,300

$1,500

$1,700

2014 2015 2016 2017 2018 2019F14

Operating Margin3

Adjusted Diluted EPS2Revenue

High-single-digit

% growth

$4.31 $4.71 $4.94$6.07

$7.39

$2.00

$3.00

$4.00

$5.00

$6.00

$7.00

$8.00

2014 2015 2016 2017 2018 2019F

43

.5%

42

.8%

18

.1%

43

.3%

42

.1%

46

.3%

46

.0%

45

.9%

47

.6%

47

.7%

0%

10%

20%

30%

40%

50%

60%

2014 2015 2016 2017 2018 2019F

Operating Margin Adj. Operating Margin

~ 4

8%

~ 4

2%

Free Cash Flow2

1 1

1

2

Financial Performance

1. Guidance as of October 30, 2019.

2. These figures are adjusted measures. See appendix for reconciliations from adjusted financial measures to U.S. GAAP.

3. 2014 – 2017 operating and adjusted operating margins have been restated to conform to the new presentation for pension expenses.

4. Reflects reduction by $701 million net of tax settlement charge.

$ Millions

$8.05

to

$8.20

November 4, 2019 16

57%

43%

Recurring Transaction

3Q 2019 TTM Revenue: $4.7 billion

Moody’s Corporation Financial Profile

53%

47%

U.S. Non-U.S.

Full Year 2019 Guidance as of October 30, 20191

Revenue • increase in the high-single-digit % range

Operating Expenses2 • increase in the high-single-digit % range

Operating Margin • approximately 42%

Adjusted Operating Margin3 • approximately 48%

Effective Tax Rate • 21.5% - 22.5%

Diluted EPS • $7.20 - $7.35

Adjusted Diluted EPS3 • $8.05 - $8.201. See press release titled “Moody's Corporation Reports Results for Third Quarter 2019” from October 30, 2019 for Moody’s full 2019 guidance.

2. Includes depreciation and amortization, restructuring charges, captive insurance company settlement, impairment pursuant to the planned divestiture of MAKS and Acquisition-Related Expenses.

3. These metrics are adjusted measures. See Appendix for reconciliations from adjusted financial measures to U.S. GAAP.

Note: The revenue reclassifications of REITs to Corporate Finance from Structured Finance and the FACT product from RD&A to ERS are reflected in the trailing twelve month (TTM) calculations.

CFG31%

SFG9%

FIG9%

PPIF9%

MIS Other1%

RD&A27%

ERS11%

PS3%

MA

MIS

November 4, 2019 17

$1,221$1,098

$739

$200 $203

~$1,000

$236$272

$285

$290 $337

25%-30% payout1

$0

$400

$800

$1,200

$1,600

150

170

190

210

230

2014 2015 2016 2017 2018 2019

$ M

illions

Mill

ion

s o

f S

ha

res

Share Repurchases (R) Dividends Paid (R)

Shares Outstanding (L)

$1,457$1,370

Disciplined Approach to Capital Allocation

Share Repurchases and Dividends Paid Annualized Dividend Per Share

$1,024

Investing in Growth Opportunities Return of Capital

Reinvestment

Invest in existing

businesses to

support organic

growth

Acquisitions

Evaluate carefully to

make sure aligned

with strategy and

market evolution

Dividends

Grow dividend in line

with earnings; target

25% - 30% payout1

Share Repurchase

Follow reinvestment,

dividends and

acquisitions in capital

allocation prioritization

$1.12

$1.36$1.48 $1.52

$1.76

$2.00

2014 2015 2016 2017 2018 3Q192

$490 $540

1. Dividend payout ratio is defined as total dividends paid/adjusted net income.

2. Annualized dividend total, based on 2019 year-to-date dividends of $0.50 declared on February 15, April 16, July 9 and October 21, 2019.

3 Capital Markets Overview

November 4, 2019 19

Q3 Issuance ActivityReceptive Market Conditions Overcame Geopolitical and Macro Headwinds

United States Rest of World

Geopolitical

Headwinds

» Trade disputes

» Political turmoil

» Trade disputes

» Brexit uncertainty

» Hong Kong protests

Negative 2020

GDP Revisions1

» 2.0%, down 30 bps » China: 5.7%, down 30 bps

» Euro Zone: 1.0%, down 40 bps

- Germany: 0.6%, down 60 bps

» UK: 0.9%, down 10 bps

Central Bank

Actions

» 25 bps rate cuts in July and

September

» Money market liquidity

provision

» ECB cut rates and restarted

bond purchasing program

Falling 10-Year

Benchmark Rates

» Sharp decline (50+ bps)

to average 1.8%; still high

among developed economies

» Sub-zero benchmarks enabled

negative-rate investment grade

corporate borrowing in Europe

and Japan

MIS Rated

Issuance2 Growth

» Up 18% » Up 2%

1. Organization for Economic Co-operation and Development September 2019 Interim Projection; revised from May 2019.

2. Excludes sovereign debt issuance.

November 4, 2019 20

Debt Leverage and Interest Coverage Remain Stable

in North America and Europe

Credit Metrics: North American Speculative Grade Companies

1. Trailing twelve months as of September 30, 2019.

Note: Historical figures may change due to timing differences in issuer reporting deadlines. Source: Moody’s Investors Service.

4.6x 4.6x 4.7x 4.5x 4.3x 4.4x 4.6x 4.8x 5.0x 5.1x 5.2x 5.4x 5.2x 5.2x

2.9x 2.6x 2.4x 2.7x 3.0x 3.1x 3.0x 3.0x 3.0x 2.9x 3.0x 3.0x 2.8x 2.9x

0.0x

1.0x

2.0x

3.0x

4.0x

5.0x

6.0x

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Inte

rest

Covera

ge

Debt / EBITDA EBITDA / Interest Expense

Credit Metrics: European Speculative Grade Companies

4.8x4.1x 4.1x

4.5x4.0x 4.0x 4.2x 4.4x 4.6x 4.5x 4.5x 4.5x

5.1x4.7x

3.0x 3.0x 2.9x 3.1x 3.4x 3.4x 3.2x 3.1x 3.2x 3.3x 3.6x 3.8x 3.6x 3.7x

0.0x

1.0x

2.0x

3.0x

4.0x

5.0x

6.0x

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Inte

rest

Covera

ge

Debt / EBITDA EBITDA / Interest Expense

1

1

November 4, 2019 21

Global Default Rates Remain Under Historic

Average; Continue to Monitor Covenant Quality

Default Rates for Speculative-

Grade Corporate Rated Issuance1

» Global speculative-grade default rate at 2.4% as of September 30, 2019; expected to

increase to 3.6% by September 2020

» Recent strengthening in U.S. loan covenants reflects weakening investor demand, while

U.S. bond covenants weaken simultaneously with pickup in issuance activity

1. Moody’s rated corporate global speculative grade default historical average of 4.2% from 1983 through 2018. 2020 forecast for trailing twelve months ended September 30, 2020.

2. As of the trailing twelve months ended September 30, 2019.

Source: Moody’s Investors Service.

3.88x

4.51x

3.75x

2.00

2.50

3.00

3.50

4.00

4.50

5.00

2012 2013 2014 2015 2016 2017 2018 3Q19

U.S. Loans U.S. Bonds European Bonds

Speculative-Grade Covenant

Quality Indicators

Weakening

Improving

2

3.6%

3.7%3.7%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%Global U.S. Europe

4.1% global

historic average1

November 4, 2019 22

Baa-Credit Concentration Has Grown, with Mitigating

Factors

$0.1

$1.9

Potential Fallen Angels

$ Trillions

$744

$2,0402.4x

3.0x

0.0x

1.0x

2.0x

3.0x

$0

$500

$1,000

$1,500

$2,000

$2,500

$ B

illio

ns

Face Value of Rated Debt Debt / EBITDA

0%

10%

20%

30%

40%

Aaa Aa A Baa Ba B Caa-C2007 2018

Rated Debt of Baa U.S. Nonfinancial Companies Has

Almost Tripled Since 2007

2018 Baa-rated Debt Accounted for More than One-third of

The Total Rated Debt of U.S. Nonfinancial Companies

2018 Potential Fallen Angels1 Accounted for $0.1 Trillion of the

$2 Trillion of U.S. Baa-Rated Nonfinancial Debt Outstanding

Ratio of Potential Fallen Angels1 to Potential Rising Stars1

Trends Downward Globally

1. Fallen Angels and Rising Stars fall within the “The Crossover Zone” which refers to the ratings closest to the line between speculative grade and investment grade. Companies in

the zone are rated Baa3 or Ba1. To be considered in the zone, companies rated Baa3 must be on review for downgrade or have a negative outlook, while companies rated Ba1

must be on review for upgrade or have a positive outlook.


» As compared to 2007, 2018 representative median companies generated more revenue ($4.7B to $7.1B),

with improved EBITDA margins (20% to 24%) and EBITDA / Interest Expense ratios (7.0x to 8.2x)

0.0

1.0

2.0

3.0

4.0

5.0

6.0

November 4, 2019 23

226 254 231 205

6893 146 15347

97

189 266

$0

$100

$200

$300

$400

$500

$600

$700

2020 2021 2022 2023

$ B

illio

ns

Investment Grade Speculative Grade Bonds Speculative Grade Bank Loans

North America and EMEA Non-Financial Corporates

Have Significant Refunding Needs1

Debt Maturities: North America Moody’s-Rated Corporate Bonds and Loans

Source: Moody’s Investors Service, January 2019.

Note: Data represents U.S. & Canadian MIS rated corporate bonds & loans.

Debt Maturities: EMEA Moody’s-Rated Corporate Bonds and Loans

Source: Moody’s Investors Service, July 2019.

1. Amount reflects total maturities identified in the above sources.

$341

$444

$566$624

338 327 356 349

28 3984 7239 46

64 69

$0

$100

$200

$300

$400

$500

$600

2020 2021 2022 2023

$ B

illio

ns

Investment Grade Speculative Grade Bonds Speculative Grade Bank Loans

$405 $412

$504 $490

» Four-year debt maturities for

North America non-financial

investment-grade corporates

approaching $1 trillion

» Four-year U.S. speculative

grade bank loans refinancing

needs up $44 billion, or 8%,

from a year ago

» Four-year debt maturities for

EMEA non-financial

corporates exceed $1.8

trillion, up more than $370

billion, or 26%, from the

prior year

November 4, 2019 24

$1,972

$2,948

$1,000

$1,300

$1,600

$1,900

$2,200

$2,500

$2,800

$3,100

2012 2013 2014 2015 2016 2017 2018 2019

$ B

illio

ns

Refunding Needs Have Grown Strongly Over Time

Next Four Years U.S. and EMEA Total Refunding Needs1 as of:

1. Amount reflects total maturities identified below.

Source: Moody’s Investors Service. U.S. and EMEA refunding needs reports January 2012 – January 2019.

Note: Data represents U.S. and European MIS rated corporate bonds & loans.

November 4, 2019 25

Debt Refinancing and M&A are Most Frequently

Stated Uses of Proceeds

Uses of Funds from USD High Yield Bonds and Bank Loans1

62% 52%

83%

71% 74% 78%71%

65%54%

64%71%

63%66%

63% 53%

19%

31% 30% 25%31%

41% 54%41%

39%48%

37%

22% 17%11%

7% 8% 8%7% 8%

5% 6%5% 6%

8%

12% 9% 4%

18% 17% 18% 22% 20% 16% 17% 13% 14%9%

1999 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 YTD 3Q2019

% o

f M

entions

Debt Refinancing M&A Capital Spending Shareholder Payments

1. Percent of mentions for each respective period in bond issue or bank loan program tranche documents. Excludes issues of less than $25 million and general corporate purposes.

An issue can have multiple purposes and, as a result, percentages do not sum to 100%.

Source: Moody’s Analytics.

November 4, 2019 26

Disintermediation of Credit is an Ongoing Trend in the Global Capital Markets

European Non-Financial Corporate

Bonds vs. Bank Loans Outstanding

4

8

%

€0

€1,000

€2,000

€3,000

€4,000

€5,000

€6,000

€7,000

€ B

illio

ns

Bonds Loans

U.S. Non-Financial Corporate

Bonds vs. Bank Loans Outstanding

4

8

%

$0

$1,500

$3,000

$4,500

$6,000

$7,500

$9,000

$ B

illio

ns

Bonds Loans

75%

25%

50%

50%

Sources: ECB, Federal Reserve, BarCap Indices. Europe bank loan data includes Eurozone and UK bank loans. Europe bond data includes euro and sterling denominated bonds.

European data is through August 2019 and U.S. data is through September 2019.

November 4, 2019 27

691

0

400

800

1,200

2014 2015 2016 2017 2018 2019F

# o

f N

ew

Mandate

s

EMEA United States Rest of World

1,044

New Rating Mandates Provide Recurring Revenue1

GrowthGlobal New Rating Mandates2

» In 3Q19, Moody’s new rating mandates increased by 232; in line with 3Q18

» Expect ~900 new mandates in 20193

» MIS recurring revenue growth driven by increased volume of monitoring fees from

recent new mandates, as well as pricing initiatives

990

771 738

1. MIS recurring revenue is typically billed annually and recognized ratably over 12 months. Recurring revenue can also be billed upfront and recognized over the life of the security.

2. Rated by Moody’s Investors Service.

3. New mandates estimate as of October 30, 2019.

1,046

~900

3

4 Moody’s Investors Service

November 4, 2019 29

38%

62%



Public,

Project, &

Infrastructure

Finance

15%

Financial

Institutions

16%

Corporate

Finance

52%

Structured

Finance

16%

MIS Other

1%

60%

40%

U.S. Non-U.S.

» 37% recurring revenue




Global • increase in the mid-single-digit % range

U.S. • increase in the mid-single-digit % range

Non-U.S. • Increase in the low-single-digit % range

Adjusted Operating Margin • approximately 58%


Moody’s Investors Service Financial Profile

Note: The revenue reclassification of REITs to Corporate Finance from Structured Finance is reflected in the trailing twelve month (TTM) calculations.

November 4, 2019 30

WIDER ACCESS TO CAPITAL INCREASED MARKET STABILITY

PLANNING & BUDGETING

TRANSPARENCY AND

CREDIT COMPARISON

TANGIBLE

FINANCING BENEFITS

RESPONSIVE TO INVESTOR

DEMAND

Investors seek

our opinions and

particularly value the

knowledge of our

analysts and the depth of

our research

The Benefits of a Moody’s Rating

November 4, 2019 31

» We remain focused on analytical expertise and our credit methodologies to provide

predictive, predictable and transparent ratings

» Accuracy reinforces investor demand pull

Rating Performance Drives Investor Confidence

2%6%7%

16%19%

26%

32%

44%

63%

87%88%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Aaa

Aa1

Aa2

Aa3

A1

A2

A3

Baa1

Baa2

Baa3

Ba1

Ba2

Ba3

B1

B2

B3

Ca

a1

Ca

a2

Ca

a3

Ca

_C

0%

2%

5%

8%

0%

1%

2%

3%

4%

5%

6%

7%

8%

9%

Aaa Aa A Baa Ba B

1 Source: Moody’s Investors Service. The data in the chart above shows the ten-year cumulative default rates by rating from January 2009, through January 2018 of fundamental Moody’s

rated universe globally. Rating category is based on senior unsecured rating (or equivalent) of the issuer.

2 Source: Moody’s Investors Service: Global multi-year cumulative WR-adjusted impairment rates by original rating,1993-2018.

Ten-Year Cumulative 1993-2018 CLO

Impairments2

Ten-Year Default Rates by Rating for 2009-

2018 Cohort: Non-Financial Corporates1

November 4, 2019 32

Illustrative Value of a Moody’s Rating

Example: 10 year $500 million corporate bond

$15 million in total interest expense

vs.

lifetime cost of a rating

$500,000,000

x 4.3%

= $21,500,000

x 10 years

= $215,000,000

Unrated Rated by Moody’s

$500,000,000

x 4.0%

= $20,000,000

x 10 years

= $200,000,000

Bond

Interest rate

Annual interest payments

Tenor

Lifetime interest expense

Note: Illustrative spread differential based on feedback from syndicate desks and FBR & Co. research on Moody’s Corporation (January 2014) which stated that obtaining a Moody’s

rating typically saves approximately 30 basis points per year for investment grade issuers. Many factors go into the pricing of a bond.

November 4, 2019 33

Americas APACEMEA

» 30,400+ rated

companies and

structured deals

» $34+ trillion total

debt rated

» 18,600 research

publications

» Offices in 10 cities*

» 4,700+ rated

companies and

structured deals


debt rated

» 6,700 research

publications


» 2,100+ rated

companies and

structured deals


debt rated

» 3,500 research

publications


Broad Coverage Serves Global Needs

1. Institutional Investor Survey.


All data as of January, 28 2019, except Research Data covers the period January 1, 2018 – December 31, 2018.

All numbers are rounded other than those marked *

~15 Years Lead/Senior Analyst

tenure

#1 U.S. Credit

Rating Agency

2012-20181

November 4, 2019 34

Continue to Invest in Key International Markets

Asia Pacific

» China:

- Successful joint venture with CCXI, leading

rating agency in China’s ~$270M domestic

single-rating bond market1

- ~$310M cross-border multi-rating bond

market rated from MIS Hong Kong office1

» South Korea: Full ownership of KIS subsidiary,

a leading provider of domestic credit ratings in

South Korea

» India: Majority stake in ICRA serves growing

domestic Indian bond market

Latin America

» Launched Moody’s Local, a new platform that will

provide domestic credit ratings and research in

Peru, Panama and Bolivia2

» Minority investment in ICR Chile deepens

Moody’s presence in dynamic and expanding

market

EMEA» Opened Moody’s offices in Saudi

Arabia and Lithuania

2008 2018

Emerging Asia Latin America Middle East

CEE/CIS Africa

Revenue in Emerging Markets

$84M

$313M

EMEA1. Forecast for full year 2019.

2. Subject to regulatory approvals. Moody’s Local ratings represent forward-looking rank-orderings of creditworthiness within the domestic market of a specific country. They are not

comparable between countries, and are distinct from and independent of the opinions of MIS and its global ratings.

November 4, 2019 35

~260

05101520253035404550556065707580859095100105110115120125130135140145150155160165170175180185190195200205210215220225230235240245250255260265270275

Moody's Vigeo Eiris

Analysis

» Moody’s forecasts global

green bond issuance to

exceed $200 billion in

2019, a projected increase

of 20% over 20181

» Moody’s Green Bond

Assessment (“GBA”)

portfolio is expected to

save an estimated 2.6

million metric tons of

annual carbon emissions2

» Majority acquisition of Four

Twenty Seven

complements majority

stake in Vigeo Eiris

underscoring work to

advance global standards

for assessing

environmental and

climate risk factors

Outreach

» Organized or participated

at 100+ global ESG events

in 2018, attracting 5,500+

market participants

» Strategic relationships

with industry organizations

and influencers across

sustainable finance

Research

» In 2018, Moody’s published

200+ research reports

focused on ESG risks and

opportunities, up ~170%

from 2017

10

18

21

0

5

10

15

20

25

2016 2017 2018

1. Forecast as of January 31, 2019.

2. Based on preliminary 2018 data. Sources: Climate Bonds Initiative, Moody's Investors Service.

3. Year-to-date as of September 30, 2019. Includes approximately 60 Moody’s GBAs and 200 Vigeo Eiris Second Party Opinions on green, sustainability and social bonds.

3Annual Moody’s

Assessments

Total Combined

Assessments

MIS ESG Opportunity: Driving Expansion

Beyond Credit

5 Moody’s Analytics

November 4, 2019 37

Research, Data and Analytics

65%

Enterprise Risk Solutions

26%

Professional Services

9%

Moody’s Analytics Financial Profile

84%

16%


42%

58%

U.S. Non-U.S.


» ~ 96% retention rate1


» Combination of one-off contracts and

semi-recurring revenue


Global • increase in the low-double-digit % range

U.S. • increase in the mid-teens % range

Non-U.S. • increase in the high-single-digit % range

Adjusted Operating Margin • 28% - 29%


1. Excludes Bureau van Dijk.

Note: The revenue reclassification of the FACT product from RD&A to ERS is reflected in the trailing twelve month (TTM) calculations.

November 4, 2019 38

Moody’s Analytics has Several Platforms for Growth

$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

$1,600

$1,800

$2,000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

$ M

illio

ns

Moody’s Analytics

2018 Revenue: $1,730m

2008 – 2018 CAGR: +12%

(~55% organic)


2018 Revenue: $159m

2008 – 2018 CAGR: +30%

(~18% organic)


2018 Revenue: $437m

2008 – 2018 CAGR: +14%

(~66% organic)

Research, Data & Analytics

2018 Revenue: $1,134m

2008 – 2018 CAGR: +11%

(~57% organic)

Revenue More Than Tripled Since Inception

Note: Individual line of business revenues may not add up to total Moody’s Analytics revenue due to rounding.

November 4, 2019 39

Expansion of ratings coverage

Production of insightful credit

analysis

New customers in

geographies with developing

debt capital markets

Expansion of data sets and

delivery options

Strong customer retention

RD&A: Subscription Growth Driven by Retention, Upgrades and Pricing & New Sales

Full

Ye

ar

201

8

95.8% 109.7%9.1% 4.8%

Retained Base Upgrades and Price New Sales Business Base

Subscription Sales Growth(constant currency)

Full

Ye

ar

20

17

95.5% 109.4%8.2%5.7%


Note: The sales growth attributions presented on this slide are related to RD&A subscription sales on a constant currency basis and excludes Bureau van Dijk and Reis. Upgrades

reflect amendments to existing customer contracts. New Sales reflect new contracts with new and existing customers.

1H

201

9

96.2% 111.3%9.4%5.7%


Full

Ye

ar

201

6

95.4% 110.2%8.0% 6.8%


November 4, 2019 40

ERS Revenue1: Recurring vs. Non-recurring

61%

78%

0%

20%

40%

60%

80%

100%

$0

$100

$200

$300

$400

2015 2016 2017 2018 TTM 3Q19

% R

ecu

rring$

Mill

ions

One-Time Recurring % Recurring

Recurring Revenue CAGR2 = 16%

» ERS recurring revenue has grown by $160 million since 2015

» Emphasis on subscription products supports scalability, drives operating leverage

» 3Q19 results enhanced by one-time license delivery

» Sales growth driven by IFRS174 (insurance), CECL5 (U.S. banking) and CreditLens (credit

decision solutions platform) product roll-out

1. Recurring revenue includes maintenance and subscription.

2. Compound Annual Growth Rate, 2015-2018.

3. Trailing twelve months ended September 30, 2019.

4. International Financial Reporting Standards Foundation – Standards No. 17.

5. Current Expected Credit Losses.

ERS: Driving Growth via Recurring Revenue

3

November 4, 2019 41

Global Regulatory and Accounting Drivers for the

ERS Business

Source: Moody’s Analytics market research as of January 2019.

Note: MiFID II, MiFIR and GDPR regulations are relevant to the banking sector but do not impact on Moody’s Analytics products and so have not been included on the radar.

1. The implementation of the LCR in the EU was: 60% in 2015, 70% in 2016, 80% in 2017 and 100% in 2018. In the US, advanced-approach banks had to meet 80% of the LCR

by January 1, 2015 and 100% of the ratio by January 1, 2017.

2. The G-SIB surcharge will expand the conservation buffer, subject to a 3 year phase in period. G-SIBs will be required to hold a minimum Total Loss-Absorbing Capacity”

(TLAC) of at least 16% from 2019 and 18% by 2022.

EMEA

20182019202020212022 and beyond 2019 2020 2021 2022 and beyond

Leverage

Ratio

BoE/ PRA ST

Revised

Concentration

Large Exposures

IFRS 9TLAC2NSFR

New securitization

framework

IRRBB review

CVA review FRTB

Revised SA

approach CR

Leverage

Ratio

FRTB

BoE/ PRA ST

Revised Concentration

& Large Exposures

IFRS 9

TLAC2

NSFR

New securitization

framework

IRRBB review

CVA review

Revised SA

approach CR

ECB Anacredit

FBO ST

BoE/ PRA ST

CCAR /DFAST

Leverage

Ratio

CCAR /

DFAST

NSFR

FRTB

EU-wide ST Supplementary

leverage ratio

Revised Concentration

Large Exposures

IRRBB

review

Revised SA

approach CR

TLAC2 CVA review

SEC Liquidity rules

(ETF, mutual funds)

NCUA RBC rule for

large credit unions IFRS 9

CECL

LCR1

Vickers reform

Revised SA

operational risk

Revised SA

operational risk

Revised SA

operational risk

Restrictions use

internal models for

CR RWA

Restrictions

internal models

for CR RWA

Restrictions use

internal models for

CR RWA

BoE/ PRA ST

BoE/ PRA ST

Updated

Leverage Ratio

CCAR /

DFAST

CCAR /

DFAST

CCAR /

DFAST

SCCL large

BHCs & FBO

Revised minimum

capital requirements

for MR

Revised minimum

capital requirements

for MR

Revised minimum capital

requirements for MR

Output floor

Output floor

Output floor

Supervisory rating

system for LFIs

Revised G-SIB

assessment and

HLA requirement

Revised G-SIB

assessment and

HLA requirement

Revised G-SIB

assessment and

HLA requirement

SCCL for large

banks

PSD II

6 Appendix

November 4, 2019 43

Corporate Finance: Revenue and Issuance

$124 $126 $134 $139 $135 $145 $128 $140 $140

$79 $66$87 $72 $55 $57 $97 $96 $106

$63 $64$58 $59

$39 $19

$57$68 $57

$85 $78

$110 $121

$78 $70

$73$84 $89

$0

$50

$100

$150

$200

$250

$300

$350

$400

3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19

$ M

illio

ns

Revenue1: Mix by Quarter

Other Investment Grade Speculative Grade Bank Loans

$216 $275 $312 $363 $420 $421 $425 $488 $553$109$137

$197$193

$230 $305 $262$301

$271

$143$120

$194$229

$219$183 $181

$254 $175

$96$120

$155

$212$242 $204 $254

$349 $380

$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

$1,600

2010 2011 2012 2013 2014 2015 2016 2017 2018

$ M

illio

ns

Revenue1: Mix by Year


$322 $269 $312 $305$236 $221

$329 $314$370

$99$100

$112 $94

$64$33

$105 $120$105

$138$134

$165 $210

$123$103

$100 $105$111

$44

$59

$65 $72

$39

$28

$26 $25 $43

$0

$200

$400

$600

$800

3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19

$ B

illio

ns

Issuance3: Mix by Quarter

Non-U.S. Speculative-Grade Bank LoansU.S. Speculative-Grade Bank LoansGlobal Non-Financial Speculative-Grade BondsGlobal Non-Financial Investment-Grade Bonds

$641 $750$1,125 $1,073 $1,043 $1,120 $1,192 $1,271

$1,074

$293 $250

$329 $411 $405 $329 $311$426

$304$273 $330

$353$504 $425 $354 $414

$638

$601

$120

$247

$204

$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000

2010 2011 2012 2013 2014 2015 2016 2017 2018

$ B

illio

ns

Issuance3: Mix by Year

Non-U.S. Speculative-Grade Bank LoansU.S. Speculative-Grade Bank LoansGlobal Non-Financial Speculative-Grade BondsGlobal Non-Financial Investment-Grade Bonds

2

2

1. Historical data has been adjusted to conform with current information and excludes intercompany revenue. The revenue reclassification of REITs to Corporate Finance from Structured Finance is

reflected starting from 1Q 2018.

2. Other includes: monitoring, commercial paper, medium term notes, and ICRA.

3. Sources: Moody’s Analytics, Dealogic. U.S. and Non-U.S. Speculative-Grade Bank Loans represent only Moody’s rated speculative-grade bank loans. Non-U.S. Speculative-Grade Bank Loan

Origination data available starting 2016. Note: Debt issuance categories do not directly correspond to Moody’s revenue categorization.

November 4, 2019 44

38% 39% 38% 34% 34% 35%44% 50%

40% 36% 36% 36%

21%27% 23%

22% 22% 19%

18%19%

20% 27% 25% 27%

20%16%

16%18% 15% 15%

13%7%

13%16% 18% 15%

22% 18% 23% 26% 28% 31% 26% 24% 28%20% 22% 23%

0%

20%

40%

60%

80%

100%

FY14 FY15 FY16 FY17 1Q18 2Q18 3Q18 4Q18 FY18 1Q19 2Q19 3Q19


70% 69% 68% 73% 73% 73%65% 62%

69% 70% 71% 72%

30% 31% 32% 27% 27% 27%35% 38%

31% 30% 29% 28%

0%

20%

40%

60%

80%

100%


Revenue1: Distribution by Recurring vs. Transaction

Transaction Recurring

Corporate Finance: Revenue Diversification

38% 32% 32% 35% 34% 35% 37% 36% 35% 32% 37% 34%

62% 68% 68% 65% 66% 65% 63% 64% 65% 68% 63% 66%

0%

20%

40%

60%

80%

100%


Revenue1: Distribution by Geography

Non - U.S. U.S.

Revenue1: Distribution by Product

2

1. Historical data has been adjusted to conform with current information and excludes intercompany revenue. The revenue reclassification of REITs to Corporate Finance from

Structured Finance is reflected starting from 1Q 2018.

2. Other includes: monitoring, commercial paper, medium term notes, and ICRA.

Percentages have been rounded and may not total to 100%.

November 4, 2019 45

Structured Finance: Revenue and Issuance

$23 $27 $28 $28 $25 $26 $23 $26 $25

$22$25 $24 $27

$24 $23 $24 $24 $22

$38$46

$21 $18$15

$24$18 $20 $18

$46

$50

$43 $55$51

$48

$35$41

$40

$1

$1

$1$1

$1$0

$1$1

$1

$0

$20

$40

$60

$80

$100

$120

$140

$160

3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19

$ M

illio

ns


ABS RMBS CMBS Structured Credit Other

$91 $107 $110 $98 $92 $91 $94 $97 $106

$65$90 $85

$73 $76 $81 $85 $90 $98$53

$70 $95 $116 $122 $140 $133 $143 $78$82

$78$91 $96

$137$135 $122

$165$196

$0

$0$0 $0

$0$2 $2

$2 $2

$0

$200

$400

$600

2010 2011 2012 2013 2014 2015 2016 2017 2018

$ M

illio

ns



$220$319 $335 $317 $319 $292 $298 $337 $384

$396$371

$231 $189 $238$200 $204

$254$270

$24$36

$73

$120$114

$117 $94$120

$115

$59 $39 $65

$94$159

$132 $116

$136$200

$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

2010 2011 2012 2013 2014 2015 2016 2017 2018

$ B

illio

ns


ABS RMBS CMBS Structured Credit

$67$107 $102 $89 $79

$115$65

$90 $91

$59

$73$62 $74

$64

$70

$48

$87$63

$34

$41$26 $27

$26

$36

$16

$38$34

$42

$48

$36$64

$51

$49

$21

$49

$39

$0

$50

$100

$150

$200

$250

$300

3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19

$ B

illio

ns


ABS RMBS CMBS Structured Credit



2. Sources: AB Alert, CM Alert, Moody’s Corporation. Debt issuance categories do not directly correspond to Moody’s revenue categorization.

Notes: ABS (Asset Backed Securitization) includes asset-backed commercial paper and long-term asset-backed securities. RMBS (Residential Mortgage Backed Securitization) includes covered bonds.

CMBS includes commercial mortgage-backed securities and commercial real estate CDOs. Structured Credit includes CLOs and CDOs.

November 4, 2019 46

Structured Finance: Revenue Diversification

62% 64% 62% 65% 63% 67% 64% 63% 64%57% 61% 55%

38% 36% 38% 35% 37% 33% 36% 37% 36%43% 39% 45%

0%

20%

40%

60%

80%

100%




34% 31% 33% 31% 37% 37% 38% 37% 37% 38% 36% 36%

66% 69% 67% 69% 63% 63% 62% 63% 63% 62% 64% 64%

0%

20%

40%

60%

80%

100%



Non - U.S. U.S.

22% 20% 19% 24% 22% 22% 21% 22% 23% 23% 24%

18% 18% 18%21% 21% 21% 19% 20% 23% 21% 21%

28% 31% 29% 18%14% 13% 20% 16%

18% 18% 17%

32% 31% 33% 37% 43% 44% 39% 41% 35% 37% 38%

0% 0% 0% 1% 1% 0% 0% 0% 1% 1% 1%

0%

20%

40%

60%

80%

100%

FY14 FY15 FY17 1Q18 2Q18 3Q18 4Q18 FY18 1Q19 2Q19 3Q19





Notes: ABS (Asset Backed Securitization) includes asset-backed commercial paper and long-term asset-backed securities. RMBS (Residential Mortgage Backed Securitization) includes covered bonds.

CMBS includes commercial mortgage-backed securities and commercial real estate CDOs. Structured Credit includes CLOs and CDOs.


November 4, 2019 47

Financial Institutions: Revenue and Issuance

$70$80 $77 $77 $73

$63$80 $85 $80

$24

$30 $28 $33 $38

$15

$29 $28 $31$5

$6 $6$7 $6

$6

$4$10 $7

$4

$3 $3$3 $3

$3

$3$3 $3

$0

$20

$40

$60

$80

$100

$120

$140

3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19

$ M

illio

ns


Banking Insurance Managed Investments Other

$192 $205 $228 $234 $242 $244 $240$300 $290

$69 $73$79 $89 $92 $96 $102

$102 $114

$18$17

$19 $16 $19 $16 $17

$22 $24

$0$0

$0 $0 $2 $9 $10

$13 $13

$0

$50

$100

$150

$200

$250

$300

$350

$400

$450

$500

2010 2011 2012 2013 2014 2015 2016 2017 2018

$ M

illio

ns



$1,340 $1,266 $1,312$1,072

$1,247 $1,194 $1,187 $1,232 $1,248

$87 $79$137

$161

$197$136 $112

$183$74

$0

$400

$800

$1,200

$1,600

$2,000

2010 2011 2012 2013 2014 2015 2016 2017 2018

$ B

illio

ns


Global Speculative Grade Financial Corporate Bonds

Global Investment Grade Financial Corporate Bonds

$278$241

$411$339 $327

$170

$396$315

$279

$39$49

$26$24

$20

$4

$29

$18$27

$0

$100

$200

$300

$400

$500

3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q 19

$ B

illio

ns


Global Speculative Grade Financial Corporate Bonds

Global Investment Grade Financial Corporate Bonds

1. Historical data has been adjusted to conform with current information and excludes intercompany revenue.

2. Sources: Moody’s Analytics, Dealogic. Note: Debt issuance categories do not directly correspond to Moody’s revenue categorization.

November 4, 2019 48

Financial Institutions: Revenue Diversification

35% 37% 37%45% 44% 47% 47%

28%42% 41%

49% 46%

65% 63% 63%55% 56% 53% 53%

72%58% 59%

51% 54%

0%

20%

40%

60%

80%

100%




60% 57% 57% 57% 58% 55% 50%63%

56% 60% 58% 55%

40% 43% 43% 43% 42% 45% 50%37%

44% 40% 42% 45%

0%

20%

40%

60%

80%

100%



Non - U.S. U.S.

68% 67% 65% 69% 67% 64% 61%72%

66% 69% 68% 66%

26% 26% 28% 23% 25% 27% 32%17% 26% 25% 22% 26%

5% 4% 5% 5% 5% 6% 5% 7% 5% 3% 8% 5%

1% 3% 3% 3% 3% 3% 3% 4% 3% 3% 2% 2%

0%

20%

40%

60%

80%

100%






November 4, 2019 49

$159 $156 $181 $174 $177 $202 $225 $218$185

$113 $121

$142 $167 $181$174

$188 $213

$206$0 $0

$0$0

$0$0

$0$0

$0

$0

$50

$100

$150

$200

$250

$300

$350

$400

$450

$500

2010 2011 2012 2013 2014 2015 2016 2017 2018

$ M

illio

ns


Public Finance and SovereignProject & Infrastructure FinanceOther

$374 $248

$313 $302 $307 $364 $408 $384

$292

$207 $266

$220

$0

$100

$200

$300

$400

$500

$600

$700

$800

$900

2010 2011 2012 2013 2014 2015 2016 2017 2018

$ B

illio

ns


Rated Global Project & Infrastructure Finance Bonds

Long-Term Rated U.S. Muni Bonds

Public, Project and Infrastructure: Revenue and Issuance

$80

$127

$59$82 $78 $74 $71 $79

$95

$75

$66

$57

$67 $57

$39 $57 $71

$86

$0

$50

$100

$150

$200

$250

3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19

$ B

illio

ns


Rated Global Project & Infrastructure Finance Bonds

Long-Term Rated U.S. Muni Bonds

$49$62

$47 $52 $45 $41 $46 $53 $58

$60

$57

$46$56

$54$50 $47

$56$62

$0$0

$0

$0$0

$0 $0

$0$0

$0

$20

$40

$60

$80

$100

$120

$140

3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19

$ M

illio

ns


Public Finance and Sovereign

Project & Infrastructure Finance

Other


2. Global Rated Project & Infrastructure Finance available starting in 2016 and represents Moody’s rated issuance.

Sources: Thomson SDC, Moody’s Corporation. Note: Debt issuance categories do not directly correspond to Moody’s revenue categorization.

November 4, 2019 50

58% 60% 63% 65%58% 64% 61% 58% 61% 59%

66% 69%

42% 40% 37% 35%42% 36% 39% 42% 39% 41%

34% 31%

0%

20%

40%

60%

80%

100%




37% 35% 33% 38% 43% 43% 40% 40% 41% 35% 36% 39%

63% 65% 67% 62% 57% 57% 60% 60% 59% 65% 64% 61%

0%

20%

40%

60%

80%

100%



Non - U.S. U.S.

49% 54% 54% 51% 50% 48% 46% 45% 47% 50% 49% 48%

51% 46% 46% 49% 50% 52% 54% 55% 53% 50% 51% 52%

0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0%

0%

20%

40%

60%

80%

100%


Public Finance and Sovereign Project & Infrastructure Finance Other


Public, Project and Infrastructure: Revenue Diversification



November 4, 2019 51

Moody’s Analytics: Financial Overview

$218$258 $267 $276 $280 $297 $308 $315 $318

$113

$143 $102 $110 $115$124 $122 $118 $133

$38

$40$38 $37 $40

$44 $42 $42 $43

$0

$100

$200

$300

$400

$500

$600

3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19

$ M

illio

ns


$419 $445 $483 $520 $572 $626 $668$833

$1,120$181 $196 $243 $263

$329$374 $419

$449

$451

$19 $62 $108 $119$168

$150$147

$149

$159

$0

$400

$800

$1,200

$1,600

$2,000

2010 2011 2012 2013 2014 2015 2016 2017 2018

$ M

illio

ns




Research, Data and

Analytics

27% 26% 25% 22% 15% 16% 16% 17% 16% 15% 15% 16%

73% 74% 75% 78% 85% 84% 84% 83% 84% 85% 85% 84%

0%

20%

40%

60%

80%

100%



56% 54% 51% 55% 60% 59% 60% 58% 59% 57% 58% 58%

44% 46% 49% 45% 40% 41% 40% 42% 41% 43% 42% 42%

0%

20%

40%

60%

80%

100%



Non-U.S. U.S.

54% 54% 54% 58% 66% 65% 64% 64% 65% 65% 66% 64%

31% 33% 34% 31%25% 26% 26% 27% 26% 26% 25% 27%

16% 13% 12% 10% 9% 9% 9% 9% 9% 9% 9% 9%

0%

20%

40%

60%

80%

100%


Revenue1: Distribution by Line of Business


1. Historical data has been adjusted to conform with current information and excludes intercompany revenue. Research, Data and Analytics includes Bureau van Dijk revenue

beginning from the acquisition close date, August 10, 2017. The revenue reclassification of the FACT product from RD&A to ERS is reflected starting from 1Q 2018.


November 4, 2019 52

Historically, Moody’s Revenue and Interest Rates

Have Not Been Strongly Correlated

+200bps

+120bps

+100bps

+180bps

MCO Revenue and Interest Rates

Note: Gray bars reflect periods of significant increases in the 10-year Treasury Yield.

1. 10-yr U.S. Treasury Yields are represented by the rate at the end-of-period.

Source: www.treasury.gov.

5.8%

7.8%

4.7%

6.5%

2.3%

3.3%

1.8%

3.0%2.7%

0%

1%

2%

3%

4%

5%

6%

7%

8%

9%

$0

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

199

2

199

3

199

4

199

5

199

6

199

7

199

8

199

9

200

0

200

1

200

2

200

3

200

4

200

5

200

6

200

7

200

8

200

9

201

0

201

1

201

2

201

3

201

4

201

5

201

6

201

7

201

8

201

9F

$ M

illio

ns

MIS Revenue (L) MIS Revenue Guidance MA Revenue (L)

MA Revenue Guidance MCO Revenue (L) 10-yr U.S. Treasury Yield (R)1

http://www.treasury.gov/

November 4, 2019 53

1.8x

0.0x

0.5x

1.0x

1.5x

2.0x

2.5x

$0.0

$1.0

$2.0

$3.0

$4.0

$5.0

$6.0

2017 2018 1Q19 2Q19 3Q19

$ B

illio

ns

Net Debt

Net Debt/TTM Adj. Operating Income (R)

» Committed to leverage anchored around

a BBB+ rating

» Strong track record of de-leveraging

through cash flow (e.g., de-levered

within nine months of the Bureau van

Dijk acquisition)

» Well-laddered maturities; no significant

debt maturities until September 2020

Capital Management

1

1. Trailing twelve months adjusted operating income. Amounts are adjusted measures. See Appendix for reconciliations from adjusted financial measures to U.S. GAAP

and gross debt to net debt.

2. TTM only applies to income and cash flow statement items.

3. Amounts are adjusted measures. See Appendix for reconciliations from adjusted financial measures to U.S. GAAP and gross debt to net debt.

($ Billions) TTM 3Q192

Adjusted Operating Income3 $2.2

Interest Expense $0.2

Capital Expenditures $0.1

Free Cash Flow3 $1.5

Debt $5.2

Cash, Cash Equivalents & ST Investments $1.3

Net Debt $4.0

Net Debt/Adjusted Operating Income1 1.8x

November 4, 2019 54

» ML and deep learning tools

to automate financial data

spreading at both MA and

MIS

» AI and NLP used to generate

credit reports on 6,000

municipal issuers

» RPA of manual, repeatable

tasks within MIS

» Incorporating alternative

data sources to augment

SME credit scoring accuracy

» QuantCube pilot program to

synthesize unstructured

data to enhance financial

analysis

» CompStak’s use of crowd-

sourced data on CRE leases

and sales

» NLP based early warning and

monitoring tools for MIS

analysts and MA customers

» AI tailored credit training for

MA customers – Credit Coach

» Faster loan approvals with AI

powered lending decisions –

CreditLens

» SaaS accelerating product

development and improving

customer experience

» Leveraging PaaS to

experiment with application of

tools and techniques --

blockchain and big data

» Moody’s IT moving to IaaS to

expand capabilities and lower

costs

Enhance

Data & Analytics

Deliver

Efficiencies

Improve

Decisions

Increase

Adaptability

Note: AI: Aritificial Intelligence; ML: Machine learning; NLP: Natural language processing; RPA: Robotic process automation; IaaS: Infrastructure-as-a-service; SaaS: Software-as-a-

service; PaaS: Platform-as-a-service.

Technology: Innovating with PurposeNext Gen Tech is a Defining Element of our Culture, Setting Stage for Growth

November 4, 2019 55

Moody’s Global Presence

U.S. employees non-U.S. employees total employees2

U.S. employees non-U.S. employees total employees1

3,875 9,850 13,725

2019

3,743 8,878 12,621

2018

1. As of September 30, 2019. Includes ~2,800 MAKS employees.

2. As of September 30, 2018.

Americas

Argentina Mexico

Brazil Panama

Canada Peru

Chile United States

Costa Rica

Europe, Middle East & Africa

Austria Poland

Belgium Portugal

Cyprus Russia

Czech Republic Saudi Arabia

Denmark Slovak Republic

France South Africa

Germany Spain

Israel Sri Lanka

Italy Sweden

Lithuania Switzerland

Mauritius United Arab Emirates

Morocco United Kingdom

Netherlands

Asia-Pacific

Australia Malaysia

China Nepal

Hong Kong Singapore

India South Korea

Japan Thailand

November 4, 2019 56

Reconciliation of Adjusted Financial Measures to

GAAPAdjusted Operating Income and Adjusted Operating Margin Reconciliation1

(in $ millions) 2014 2015 2016 2017 2018 TTM 3Q19

Operating Income $1,449.8 $1,490.7 $650.9 $1,820.8 $1,868.2 $1,870.6

Operating Margin 43.5% 42.8% 18.1% 43.3% 42.1% 40.2%

Add Adjustment:

Depreciation & Amortization 95.6 113.5 126.7 158.3 191.9 198.2

Acquisition-Related Expenses - - - 22.5 8.3 7.6

Restructuring - - 12.0 - 48.7 107.0

Captive insurance company settlement - - - - - 15.5

Settlement Charge - - 863.8 - - -

Impairment pursuant to the planned

divestiture of MAKS - - - - - 10.7

Adjusted Operating Income $1,545.4 $1,604.2 $1,653.4 $2,001.6 $2,117.1 $2,209.6

Adjusted Operating Margin 46.3% 46.0% 45.9% 47.6% 47.7% 47.5%

Moody's Corporation Net Debt Reconciliation

1. 2014 - 2017 operating and adjusted operating income have been restated to conform to the new presentation of pension accounting.

(in $ millions) 2014 2015 2016 2017 2018 3Q19

Gross debt $2,532.1 $3,380.6 $3,363.0 $5,540.5 $5,676.0 $5,238.0

Less: Cash, cash equivalents and

short-term investments1,677.6 2,232.2 2,224.9 1,183.3 1,817.5 1,273.8

Net debt $854.5 $1,148.4 $1,138.1 $4,357.2 $3,858.5 $3,964.2

November 4, 2019 57


GAAP (cont.)

Moody's Corporation Operating Margin Guidance Reconciliation

2019F1

Projected Operating Margin - GAAP Approximately 42%

Depreciation & Amortization Approximately 4.2%

Restructuring Approximately 1.2%

Captive insurance company settlement Approximately 0.3%

Impairment pursuant to the planned divestiture of MAKS Approximately 0.2%

Acquisition-Related Expenses Approximately 0.1%

Projected Adjusted Operating Margin Approximately 48%

Free Cash Flow Reconciliation2

(in $ millions) 2014 2015 2016 2017 2018 2019F1

Net cash flows from operating

activities$1,077.3 $1,198.1 $1,259.2 $754.6 $1,461.1 $1,700.0 - $1,800.0

Less: Capital expenditures 74.6 89.0 115.2 90.6 90.4 ~100.0

Free Cash Flow $1,002.7 $1,109.1 $1,144.0 $664.0 $1,370.7 $1,600.0 to $1,700.0


2. In 2017, the Company adopted ASU 2016-09 “Improvements to Employee Share-Based Payment Accounting” on a retrospective basis. In Q1 2018, the Company adopted ASU No. 2016-

15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (a Consensus of the Emerging Issues Task Force)” on a retrospective basis.

November 4, 2019 58


GAAP (cont.)Moody's Corporation Diluted EPS Reconciliation

2014 2015 2016 2017 2018 2019F1

Diluted EPS - GAAP $4.61 $4.63 $1.36 $5.15 $6.74 $7.20 - $7.35

Legacy Tax (0.03) (0.03) - - - -

Impact of Litigation Settlement - - $3.59 - - -

Captive insurance company settlement~0.06

ICRA Gain (0.37) - - - - -

FX Gain due to Subsidiary Liquidation - - ($0.18) - - -

Restructuring - - $0.04 - $0.19 ~$0.23

CCXI Gain - - - ($0.31) - -

Acquisition-Related Expenses - - - $0.10 $0.03 ~$0.01

Purchase Price Hedge Gain - - - ($0.37) - -

Acquisition-Related Intangible

Amortization Expenses$0.10 $0.11 $0.13 $0.23 $0.40 ~$0.41

Impact of U.S. tax reform - - - $1.28 ($0.30) -

Net Impact of U.S./European tax change

on deferred taxes- - - ($0.01) - -

Increase to non-U.S. UTPs - - - - $0.33 -

Tax charge associated with planned

divestiture of MAKS- - - - - ~$0.08

Impairment pursuant to the planned

divestiture of MAKS- - - - - ~$0.06

Adjusted Diluted EPS $4.31 $4.71 $4.94 $6.07 $7.39 $8.05 - $8.20


Note: Table may not sum to total due to rounding.

Investor Relations

ir.moodys.com

[email protected]

moodys.com

http://ir.moodys.com/

mailto:[email protected]

November 4, 2019 60

© 2019 Moody’s Corporation, Moody’s Investors Service, Inc., Moody’s Analytics, Inc. and/or their licensors and

affiliates (collectively, “MOODY’S”). All rights reserved.

CREDIT RATINGS ISSUED BY MOODY'S INVESTORS SERVICE, INC. AND ITS RATINGS AFFILIATES

(“MIS”) ARE MOODY’S CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES,

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RECOMMENDATIONS TO PURCHASE, SELL, OR HOLD PARTICULAR SECURITIES. NEITHER CREDIT

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DUE CARE, MAKE ITS OWN STUDY AND EVALUATION OF EACH SECURITY THAT IS UNDER

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MOODY’S CREDIT RATINGS OR MOODY’S PUBLICATIONS WHEN MAKING AN INVESTMENT DECISION.

IF IN DOUBT YOU SHOULD CONTACT YOUR FINANCIAL OR OTHER PROFESSIONAL ADVISER.

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COPYRIGHT LAW, AND NONE OF SUCH INFORMATION MAY BE COPIED OR OTHERWISE REPRODUCED,

REPACKAGED, FURTHER TRANSMITTED, TRANSFERRED, DISSEMINATED, REDISTRIBUTED OR

RESOLD, OR STORED FOR SUBSEQUENT USE FOR ANY SUCH PURPOSE, IN WHOLE OR IN PART, IN

ANY FORM OR MANNER OR BY ANY MEANS WHATSOEVER, BY ANY PERSON WITHOUT MOODY’S

PRIOR WRITTEN CONSENT.

CREDIT RATINGS AND MOODY’S PUBLICATIONS ARE NOT INTENDED FOR USE BY ANY PERSON AS A

BENCHMARK AS THAT TERM IS DEFINED FOR REGULATORY PURPOSES AND MUST NOT BE USED IN

ANY WAY THAT COULD RESULT IN THEM BEING CONSIDERED A BENCHMARK.

All information contained herein is obtained by MOODY’S from sources believed by it to be accurate and reliable.

Because of the possibility of human or mechanical error as well as other factors, however, all information

contained herein is provided “AS IS” without warranty of any kind. MOODY'S adopts all necessary measures so

that the information it uses in assigning a credit rating is of sufficient quality and from sources MOODY'S

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an auditor and cannot in every instance independently verify or validate information received in the rating

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To the extent permitted by law, MOODY’S and its directors, officers, employees, agents, representatives,

licensors and suppliers disclaim liability to any person or entity for any indirect, special, consequential, or

incidental losses or damages whatsoever arising from or in connection with the information contained herein or

the use of or inability to use any such information, even if MOODY’S or any of its directors, officers, employees,

agents, representatives, licensors or suppliers is advised in advance of the possibility of such losses or damages,

including but not limited to: (a) any loss of present or prospective profits or (b) any loss or

damage arising where the relevant financial instrument is not the subject of a particular credit rating assigned

by MOODY’S.

To the extent permitted by law, MOODY’S and its directors, officers, employees, agents, representatives,

licensors and suppliers disclaim liability for any direct or compensatory losses or damages caused to any person

or entity, including but not limited to by any negligence (but excluding fraud, willful misconduct or any other type

of liability that, for the avoidance of doubt, by law cannot be excluded) on the part of, or any contingency within

or beyond the control of, MOODY’S or any of its directors, officers, employees, agents, representatives,

licensors or suppliers, arising from or in connection with the information contained herein or the use of or inability

to use any such information.

NO WARRANTY, EXPRESS OR IMPLIED, AS TO THE ACCURACY, TIMELINESS, COMPLETENESS,

MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE OF ANY CREDIT RATING OR

OTHER OPINION OR INFORMATION IS GIVEN OR MADE BY MOODY’S IN ANY FORM OR

MANNER WHATSOEVER.

Moody’s Investors Service, Inc., a wholly-owned credit rating agency subsidiary of Moody’s Corporation (“MCO”),

hereby discloses that most issuers of debt securities (including corporate and municipal bonds, debentures,

notes and commercial paper) and preferred stock rated by Moody’s Investors Service, Inc. have, prior to

assignment of any rating, agreed to pay to Moody’s Investors Service, Inc. for ratings opinions and services

rendered by it fees ranging from $1,000 to approximately $2,700,000. MCO and MIS also maintain policies and

procedures to address the independence of MIS’s ratings and rating processes. Information regarding certain

affiliations that may exist between directors of MCO and rated entities, and between entities who hold ratings

from MIS and have also publicly reported to the SEC an ownership interest in MCO of more than 5%, is posted

annually at www.moodys.com under the heading “Investor Relations — Corporate Governance — Director and

Shareholder Affiliation Policy.”

Additional terms for Australia only: Any publication into Australia of this document is pursuant to the Australian

Financial Services License of MOODY’S affiliate, Moody’s Investors Service Pty Limited ABN 61 003 399

657AFSL 336969 and/or Moody’s Analytics Australia Pty Ltd ABN 94 105 136 972 AFSL 383569 (as applicable).

This document is intended to be provided only to “wholesale clients” within the meaning of section 761G of the

Corporations Act 2001. By continuing to access this document from within Australia, you represent to MOODY’S

that you are, or are accessing the document as a representative of, a “wholesale client” and that neither you nor

the entity you represent will directly or indirectly disseminate this document or its contents to “retail clients” within

the meaning of section 761G of the Corporations Act 2001. MOODY’S credit rating is an opinion as to the

creditworthiness of a debt obligation of the issuer, not on the equity securities of the issuer or any form of

security that is available to retail investors.

Additional terms for Japan only: Moody's Japan K.K. (“MJKK”) is a wholly-owned credit rating agency subsidiary

of Moody's Group Japan G.K., which is wholly-owned by Moody’s Overseas Holdings Inc., a wholly-owned

subsidiary of MCO. Moody’s SF Japan K.K. (“MSFJ”) is a wholly-owned credit rating agency subsidiary of MJKK.

MSFJ is not a Nationally Recognized Statistical Rating Organization (“NRSRO”). Therefore, credit ratings

assigned by MSFJ are Non-NRSRO Credit Ratings. Non-NRSRO Credit Ratings are assigned by an entity that is

not a NRSRO and, consequently, the rated obligation will not qualify for certain types of treatment under U.S.

laws. MJKK and MSFJ are credit rating agencies registered with the Japan Financial Services Agency and their

registration numbers are FSA Commissioner (Ratings) No. 2 and 3 respectively.

MJKK or MSFJ (as applicable) hereby disclose that most issuers of debt securities (including corporate and

municipal bonds, debentures, notes and commercial paper) and preferred stock rated by MJKK or MSFJ (as

applicable) have, prior to assignment of any rating, agreed to pay to MJKK or MSFJ (as applicable) for ratings

opinions and services rendered by it fees ranging from JPY125,000 to approximately JPY250,000,000.

MJKK and MSFJ also maintain policies and procedures to address Japanese regulatory requirements.

http://www.moodys.com/

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