4Q and FY 2022 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
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
b €
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
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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 ratings advisors,
Moody's enjoys a strong
position and is well-
recognized for the depth
and breadth of its
excellence³
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.
MOODY'S
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4Q and FY 2022 Investor Presentation
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