Moody’s profit soars; forecasts strong 2013 earnings

NEW YORK, Fri Feb 8, 2013 — Credit rating agency Moody’s Corp., which could face a federal lawsuit tied to pre-crisis ratings, said quarterly profit jumped 66 percent and the company forecast strong 2013 earnings.

The company has been benefiting as firms refinance debt to take advantage of rock-bottom interest rates to access cheap funding.

Moody’s said it expects full-year earnings in the range of $3.45 to $3.55 per share and full-year revenue growth rate in the high single digits percent range.

Analysts on average were expecting the company to earn $3.18 per share, excluding items, according to Thomson Reuters I/B/E/S.

The growth rate at the Investor Services unit, which houses the bond rating business, is set to slow. The company forecast revenue growth at the unit in the high-single-digit percent range, compared with the 20 percent rise in 2012.

Net income rose to $160.1 million, or 70 cents per share, in the fourth quarter, from $96.2 million, or 43 cents per share, a year earlier.

Revenue rose 33 percent to $754.2 million.