Moody's Corp Q1 2022 Earnings Call Transcript

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

Question: Ashish Sabadra - RBC Capital Markets, Research Division - Analyst : So maybe just drilling down further on the MIS transaction revenues. Historically, the revenues grew faster than issuance because you have the pricing tailwind. But here, given that some of the higher revenue yield like high yield and lev loans are under pressure, how should we think about the dynamic of transaction revenue growth versus issuance growth for this year? Any color?

Question: Ashish Sabadra - RBC Capital Markets, Research Division - Analyst : That's very helpful. And then maybe as we think about -- maybe Rob, as we think about the midterm guidance, right, given that '22 is going to be worse compared to what your prior expectations were, how should we think about that as a base for the midterm guidance? Does that help you get a better base for out-years? Or do you think these headwinds and muted growth continues over the midterm? So any color on that low to --

Question: Andrew Owen Nicholas - William Blair & Company L.L.C., Research Division - Analyst : The first one I had was just on some comments you made in the prepared remarks and in the press release about your risk management offerings providing increased value during uncertain times. I was just wondering if you could maybe expand a bit more on that and maybe how you would expect that to kind of flush its way through in terms of financial performance or growth. Is that leading to more productive pricing conversations? Are new clients coming to you with that in mind in a choppier market to have new product or upsell conversations that you might not have otherwise had? Just trying to figure out what that could mean in terms of performance for the business.

Question: Andrew Owen Nicholas - William Blair & Company L.L.C., Research Division - Analyst : Got it. And then for my follow-up, just curious, I know you're confident that this is more of a cyclical headwind in the near term to issuance than secular. Does that change your appetite for M&A in the near term or at least until MIS revenue or issuance trends stabilize? Or is it pretty much business as usual on that front?