Moody's Corp at JPMorgan Ultimate Services Investor Conference Summary

The following is excerpted from the question-and-answer section of the transcript.

Question: Andrew Steinerman - J.P. Morgan - Analyst : <_ALACRA_META_ABSTRACT>So NoTmie, you're in the seat now about 7 months. We probably sat down long format when you were really early in the seat. But now it's a nice period of time. And obviously, you have a big history at -- what do we call Ceridian now?

Question: Andrew Steinerman - J.P. Morgan - Analyst : Dayforce, sorry. I covered Ceridian in the mid-90s, so it's a little hard for me. But what I wanted you to do is just tell us what have you learned?

Question: Andrew Steinerman - J.P. Morgan - Analyst : Okay, great. Obviously, you come from a very successful SaaS subscription company. And when we talk about MA, we talk about it as heavily subscription for good reason. But there's still transformation going on in MA. And it's not a singular scaled SaaS company from where you came from. So now that you have your experience and you've come to MA, and you've really dealt with it, how far along are we in that transformation? And what will be the results when we're sort of further?

Question: Andrew Steinerman - J.P. Morgan - Analyst : So looking at MA, specifically the organic ARR, and I do like the definition of ARR. It dipped to 9% in the third quarter, but you're still guiding for a robust year on MA, organic ARR. In other words, acceleration into the fourth quarter to get the year inside the guide. What needs to go right? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 14, 2024 / 6:50PM, MCO.N - Moody's Corp at JPMorgan Ultimate Services Investor Conference

Question: Andrew Steinerman - J.P. Morgan - Analyst : Selling season quarter.

Question: Andrew Steinerman - J.P. Morgan - Analyst : Can I just make sure I understand that 50% sales pipeline is growing. I mean at first, it just sounds like this amazing figure, but my thought maybe is that things aren't closed. So they're just sort of staying in the pipeline longer. Like, is this 50% figure super-duper encouraging like it sounds? Or maybe it's really describing a slower-moving decision?

Question: Andrew Steinerman - J.P. Morgan - Analyst : So last year, Rob was in the seat here. And I asked him how does he think about the medium-term? MA guide of low to mid-teens. That's annual growth. And he used the word punchy, just so you know. I know you weren't hired yet, but that is what he -- the word he used. What word would you use for those ambitions and the achievability of them?

Question: Andrew Steinerman - J.P. Morgan - Analyst : Right. So you're holding these targets for your broader team.

Question: Andrew Steinerman - J.P. Morgan - Analyst : Okay. So what should we know about bending the curve?

Question: Andrew Steinerman - J.P. Morgan - Analyst : I would like to [frame] -- and that mid-30s margins, you would have called that aspirational. You would say that's our target, right?

Question: Andrew Steinerman - J.P. Morgan - Analyst : Okay. It's obvious that RMS has been a huge success, maybe as big of a success as BvD was when acquired or since required in 2017. RMS goes back to 2021. Like, is it time for a scaled acquisition for Moody's? And is it necessary?

Question: Andrew Steinerman - J.P. Morgan - Analyst : I was --?

Question: Andrew Steinerman - J.P. Morgan - Analyst : And the company was a challenger in that.

Question: Andrew Steinerman - J.P. Morgan - Analyst : As envisioned. It really was.

Question: Andrew Steinerman - J.P. Morgan - Analyst : Okay. So just going to mention, D&B is up for sale.

Question: Andrew Steinerman - J.P. Morgan - Analyst : I don't know. Others have commented on it actually, but no problem. No problem. Is commercial credit an area that you want to increase? Like, to me, when you did BvD, all I can tell you is the big success of BvD was like leveraging everything else but commercial credit.

Question: Andrew Steinerman - J.P. Morgan - Analyst : So I don't know if you know it, but there was a election last week. I know it's like half of a conversation, we haven't even mentioned the election. So my question is -- REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 14, 2024 / 6:50PM, MCO.N - Moody's Corp at JPMorgan Ultimate Services Investor Conference

Question: Andrew Steinerman - J.P. Morgan - Analyst : It is. It is. I'm just like, we have to get there. So really, I'm talking about the MIS side of the business. Is this a clear positive or is it more mixed in terms of Trump Administration or Republican sweep?

Question: Andrew Steinerman - J.P. Morgan - Analyst : Post election or -- like, this was an election question.

Question: Andrew Steinerman - J.P. Morgan - Analyst : Right. But when I think about particularly refi and the refi walls, I think of two things. I don't just think about tight spreads, which is positive, I think about the level of rates as well. It just seems like with the current vows of the Trump incoming administration is that it's very possible, what they'll do is inflationary. And even though interest rates are dropping, they might drop more slowly now. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 14, 2024 / 6:50PM, MCO.N - Moody's Corp at JPMorgan Ultimate Services Investor Conference

Question: Andrew Steinerman - J.P. Morgan - Analyst : You think that's more important? Okay. Great. Why don't we open up for questions? So you said more positive after election, right?

Question: Andrew Steinerman - J.P. Morgan - Analyst : Okay. Great. Unidentified Participant I was just hoping you could elaborate a little bit on the company's efforts and priorities with respect to private credit.

Question: Andrew Steinerman - J.P. Morgan - Analyst : Could you say at this point that it's a net positive for Moody's?

Question: Andrew Steinerman - J.P. Morgan - Analyst : I'll tell you the piece of that I so find hard to research is just knowing the amount of debt that gets issued in private credit that, let's say, if it was in the capital markets, would have got rated, but now it didn't get rated. It's just hard to track that. You can obviously track everything that you've got and rated.

Question: Andrew Steinerman - J.P. Morgan - Analyst : Sure. Other questions?

Question: Andrew Steinerman - J.P. Morgan - Analyst : Questions? Go ahead, Ram. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 14, 2024 / 6:50PM, MCO.N - Moody's Corp at JPMorgan Ultimate Services Investor Conference Unidentified Participant Ram, TD Asset Management. How are you thinking about what's happened over the last 10, 15 years? You've obviously seen a deleveraging cycle. Companies are more free cash flow positive where we are today. How do you think about how ratings are going to increase over the medium term?

Question: Andrew Steinerman - J.P. Morgan - Analyst : So I'm going to be a little annoying. I hope that's okay. Sorry, I'm a research analyst. On the conference call, I asked about organic revenue growth. The company does not consistently disclose revenue growth when it's small acquisitions and I find it helpful to ask on the call. Rob answered with the answer that the ARR is organic. And that's true, and I do like the definition of ARR here. But I'm going to give you like another opportunity, and Rob is not here. Would you be willing to tell us how much GCR contributed to MIS revenues in the third quarter? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 14, 2024 / 6:50PM, MCO.N - Moody's Corp at JPMorgan Ultimate Services Investor Conference

Question: Andrew Steinerman - J.P. Morgan - Analyst : I am a -- but I would say that 0.4% revenue growth, if it was compounded, has a meaningful effect on shareholder value.

Question: Andrew Steinerman - J.P. Morgan - Analyst : Which is similar to all the other companies in the space. Other questions? No. Why don't I just turn it back to you? What am I not asking you? Obviously, I know I'm very like diligent about asking certain questions, but I'm sure there are subjects you want to talk about that I haven't brought up.

Question: Andrew Steinerman - J.P. Morgan - Analyst : Right. How's morale and company culture? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 14, 2024 / 6:50PM, MCO.N - Moody's Corp at JPMorgan Ultimate Services Investor Conference

Question: Andrew Steinerman - J.P. Morgan - Analyst : And you moved to New York for this.

Question: Andrew Steinerman - J.P. Morgan - Analyst : It's a big deal. Last question. Obviously, we'll be sitting together a year from now. And what do you think will be important a year from now if you could try to look in the crystal ball that we were not really yet talking about here today as it pertains to Moody's book of business?

Question: Andrew Steinerman - J.P. Morgan - Analyst : Sounds good. Thank you very much.