Tag: business
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Rating the Backbone: The Crucial Role of Credit Ratings in Assessing Systemically Important Tech Giants
In a world increasingly driven by a small number of powerful technology firms, the importance of timely and accurate credit ratings has never been higher. Companies such as TSMC, ASML, Microsoft, Apple, Google, Nvidia, Amazon, Meta, SAP, Oracle, Huawei, Ericsson, and ARM form the digital backbone of modern economies. Any disruption in their operations —…
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Moody’s Delivers in Q2 — But Familiar Questions Linger
Moody’s Corporation posted a strong financial performance in the second quarter of 2025, continuing its momentum amid a complex and often volatile macroeconomic landscape. The company reported a 4% increase in revenue compared to the same quarter last year, with adjusted operating margin rising by 130 basis points to 50.9%. Adjusted diluted EPS also grew…
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Why the Demands of the eIDAS Position Paper Would Enhance the Accuracy of Ratings
The introduction of the EUDI Wallet and the establishment of a trustworthy and widely adopted eIDAS ecosystem offer transformative potential—not only for digital administration and consumer services, but also for the world of credit ratings and risk assessments. Implementing the five demands outlined in the July 2025 position paper would significantly strengthen the foundations for…
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After FINMA’s Greensill Ruling: Should Big Banks Rely Less on Rating Agencies and More on Internal Credit Research?
The collapse of Greensill Capital and the subsequent enforcement proceedings against Credit Suisse by the Swiss Financial Market Supervisory Authority (FINMA) offer a stark warning to the global banking sector. The comprehensive FINMA report, which details severe organizational failures and risk blind spots within Credit Suisse Asset Management (CSAM), raises a fundamental question: should large…
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European Investment Banking and Capital Markets Activity Slows in H1 2025: Implications for Rating Agencies
According to data from LSEG Deals Intelligence, investment banking fees (more precisely, commissions) in Europe totaled an estimated US$13.4 billion in the first half of 2025. This marks an 11% year-over-year decline, though still higher than the levels recorded in the first half of 2023 and 2022. Debt capital markets (DCM) underwriting commissions reached US$5.8 billion,…
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Potential Consequences for Scope Ratings if Greensill Bank Allegations Are Confirmed
If the serious allegations surrounding the collapse of Greensill Bank are confirmed, significant consequences could loom for the Berlin-based credit rating agency Scope Ratings. As the agency to have provided Greensill Bank with a credit rating prior to its dramatic collapse in March 2021, Scope may face legal, reputational, and regulatory fallout. Legal Risks: Exposure…
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MSCI and Moody’s Forge Strategic Alliance to Enhance Private Credit Risk Assessment
In a significant move to bolster transparency and consistency in the private credit market, MSCI Inc. (NYSE: MSCI) and Moody’s Corporation (NYSE: MCO) have announced a strategic partnership aimed at delivering independent risk assessments for private credit investments at scale. “As the private credit market continues to evolve and grow, the need for consistent standards…
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The Relevance of EBA’s ESG Scenario Analysis Guidelines for Credit Rating Agencies
As climate change and broader sustainability considerations increasingly shape financial risk landscapes, the European Banking Authority’s (EBA) recent Guidelines on ESG Scenario Analysis represent a pivotal regulatory milestone. While primarily targeted at credit institutions, these guidelines carry substantial implications for credit rating agencies (CRAs), whose methodologies must keep pace with evolving definitions of risk. Aligning Credit Risk Assessment…
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ESMA Imposes Fine on Modefinance S.r.l. for Misleading Use of Its Name
The European Securities and Markets Authority (ESMA) has fined the Italian credit rating agency Modefinance S.r.l. EUR 420,000 for breaching the Credit Rating Agencies Regulation (CRA Regulation). The penalty was imposed after the company was found to have misleadingly used ESMA’s name in statements regarding its credit rating activities. Misuse of ESMA’s Name According to…
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Analysis of the FiDA Proposal from a Credit Rating Agency Perspective
The proposed Financial Data Access Regulation (FiDA) aims to enhance competition and innovation in the European financial market by facilitating data sharing. However, the Deutsche Kreditwirtschaft (DK) has raised significant concerns regarding its implementation, arguing that it imposes excessive burdens on financial institutions and lacks a well-defined scope. From the perspective of a credit rating…
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Moody’s Margin Development: 2024 Performance and 2025 Outlook
Moody’s Corporation demonstrated strong margin expansion in 2024, driven by revenue growth, cost efficiency measures, and disciplined execution. The company’s operating margin increased from 36.1% in 2023 to 40.6% in 2024, reflecting higher revenue across both Moody’s Investors Service (MIS) and Moody’s Analytics (MA). Adjusted operating margin saw an even stronger improvement, rising from 43.9%…
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Powering Financial Markets: The Pivotal Role of S&P Global Ratings
S&P Global Inc. (SPGI) has solidified its position as a leader in financial intelligence and analytics, with its Ratings business playing a crucial role in its sustained growth and profitability. As one of the world’s foremost credit rating agencies, S&P Global Ratings provides essential insights into credit risk, helping investors and institutions make informed decisions.…
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Industrial Real Estate Market Outlook 2025: Key Trends and Insights
The industrial real estate sector continues to evolve amidst changing market conditions. The IndustrialPort Observer 2025 survey gathered insights from industry experts, including property owners, asset managers, and appraisers, to assess the market sentiment and forecast trends for the coming year. Market Sentiment: A Shift Towards Caution The survey indicates a shift towards a more…
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Charting the Future: Unveiling the Strategic Insights of ‘Big Picture: 2025’
The FERI Cognitive Finance Institute (FCFI) has recently published its groundbreaking study, “Big Picture: 2025,” offering an unprecedentedly comprehensive and multifaceted analysis of the key global trends that are set to shape the near future. This publication, rooted in the Institute’s innovative Cognitive Finance methodology, brings together 35 core scenarios from six interconnected domains: politics,…
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Moody’s Acquisition of CAPE Analytics: A Timely Response to Rising Climate Risks Amid California Wildfires
The announcement of Moody’s acquisition of CAPE Analytics comes at a highly relevant moment, as the devastating wildfires in California dominate media headlines and bring heightened awareness to the risks posed by natural disasters. This timely move underscores the growing importance of sophisticated risk analytics in addressing the escalating financial and environmental challenges associated with…
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Moody’s Acquisition of Numerated: Implications for the Credit Rating and Lending Industry
Moody’s Corporation (NYSE: MCO) has announced the acquisition of Numerated Growth Technologies (Numerated), a cutting-edge loan origination platform tailored for financial institutions. This move strengthens Moody’s Lending Suite capabilities, offering banking clients a comprehensive, end-to-end solution for loan origination and monitoring. The acquisition, which builds on a partnership initiated in early 2024, marks a significant…
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Moody’s Reports Record-Breaking Third Quarter 2024 with Strong Revenue Growth and Raised Earnings Outlook
Moody’s Corporation delivered outstanding results for the third quarter of 2024, highlighting the company’s resilience and ability to capitalize on favorable market conditions. Revenue for the quarter surged by 23% compared to the same period in 2023, reaching an impressive $1.8 billion. This growth was driven largely by the stellar performance of Moody’s Investors Service…
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DekaBank Partners with Scope: A Long-Awaited Milestone for a Berlin Rating Agency
As Europe continues to push for financial sovereignty and the establishment of a strong Capital Markets Union, Scope’s ability to secure more high-profile European clients will be crucial. Deka’s decision to fully integrate Scope’s ratings is certainly a step in the right direction, but for a rating agency with 20 years of experience, this partnership…
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