Moody's Corp Q4 2020 Earnings Call Transcript

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

Question: Judah Efram Sokel - JPMorgan Chase & Co, Research Division - Analyst : The first question I wanted to ask was about margins, specifically, the margin outlook for 2021, thinking about balancing operating leverage from the top line with reinvestment. Appreciate the color that you guys gave in the extra investment that you're making in emerging markets and taking some of the cost savings. Generally, you guys have done great with margin expansion over time. And yet here we have a year coming up where margins are going to be a little bit more constrained. So how do you think about that balance of driving margin expansion using top line growth that you will have in 2021, especially in MA, coupled with the need to continue reinvestment for growth?

Question: Andrew Owen Nicholas - William Blair & Company L.L.C., Research Division - Analyst : I was hoping you could provide a bit more detail on the different strategic investments you outlined on Slide 23. Maybe some examples of investments you're making that you're particularly excited about? And then also wondering, is there any single initiative there that's outsized relative to the others in terms of both investment spend and total opportunity? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. FEBRUARY 12, 2021 / 4:30PM, MCO.N - Q4 2020 Moody's Corp Earnings Call

Question: Andrew Owen Nicholas - William Blair & Company L.L.C., Research Division - Analyst : Great. That's helpful. And then maybe a follow-up to that KYC discussion. Obviously, it's among the faster-growing opportunities at Moody's. From a margin perspective as that becomes a bigger part of MA, is that accretive to kind of long-term margins for that business or pretty consistent with the segment as a whole?