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1Q 2020 Investor Presentation

May 6, 2020

May 6, 2020 2

Certain statements contained in this release are forward-looking statements and are based on future expectations, plans and prospects for the business and

operations of Moody’s Corporation (the “Company”) that involve a number of risks and uncertainties. Such statements may include, among other words, “believe”,

“expect”, “anticipate”, “intend”, “plan”, “will”, “predict”, “potential”, “continue”, “strategy”, “aspire”, “target”, “forecast”, “project”, “estimate”, “should”, “could”, “may”

and similar expressions or words and variations thereof that convey the prospective nature of events or outcomes generally indicative of forward-looking

statements. The forward-looking statements and other information in this release are made as of the date hereof and the Company undertakes no obligation (nor

does it intend) to publicly supplement, update or revise such statements on a going-forward basis, whether as a result of subsequent developments, changed

expectations or otherwise, except as required by applicable law or regulation. In connection with the “safe harbor” provisions of the Private Securities Litigation

Reform Act of 1995, the Company is identifying examples of factors, risks and uncertainties that could cause actual results to differ, perhaps materially, from those

indicated by these forward-looking statements. Those factors, risks and uncertainties include, but are not limited to, the impact of COVID-19 on volatility in the U.S.

and world financial markets, on general economic conditions and GDP growth in the U.S. and worldwide, and on the company’s own operations and personnel.

Many other factors could cause actual results to differ from Moody’s outlook, including credit market disruptions or economic slowdowns, which could affect the

volume of debt and other securities issued in domestic and/or global capital markets; other matters that could affect the volume of debt and other securities issued

in domestic and/or global capital markets, including regulation, credit quality concerns, changes in interest rates and other volatility in the financial markets such as

that due to uncertainty as companies transition away from LIBOR and Brexit; the level of merger and acquisition activity in the U.S. and abroad; the uncertain

effectiveness and possible collateral consequences of U.S. and foreign government actions affecting credit markets, international trade and economic policy,

including those related to tariffs and trade barriers; concerns in the marketplace affecting our credibility or otherwise affecting market perceptions of the integrity or

utility of independent credit agency ratings; the introduction of competing products or technologies by other companies; pricing pressure from competitors and/or

customers; the level of success of new product development and global expansion; the impact of regulation as an NRSRO, the potential for new U.S., state and

local legislation and regulations, including provisions in the Dodd-Frank Wall Street Reform and Consumer Protection Act (“Dodd-Frank”) and regulations resulting

from Dodd-Frank; the potential for increased competition and regulation in the EU and other foreign jurisdictions; exposure to litigation related to our rating

opinions, as well as any other litigation, government and regulatory proceedings, investigations and inquiries to which the Company may be subject from time to

time; provisions in the Dodd-Frank legislation modifying the pleading standards, and EU regulations modifying the liability standards, applicable to credit rating

agencies in a manner adverse to credit rating agencies; provisions of EU regulations imposing additional procedural and substantive requirements on the pricing of

services and the expansion of supervisory remit to include non-EU ratings used for regulatory purposes; the possible loss of key employees; failures or

malfunctions of our operations and infrastructure; any vulnerabilities to cyber threats or other cybersecurity concerns; the outcome of any review by controlling tax

authorities of the Company’s global tax planning initiatives; exposure to potential criminal sanctions or civil remedies if the Company fails to comply with foreign

and U.S. laws and regulations that are applicable in the jurisdictions in which the Company operates, including data protection and privacy laws, sanctions laws,

anti-corruption laws, and local laws prohibiting corrupt payments to government officials; the impact of mergers, acquisitions or other business combinations and

the ability of the Company to successfully integrate such acquired businesses; currency and foreign exchange volatility; the level of future cash flows; the levels of

capital investments; and a decline in the demand for credit risk management tools by financial institutions. These factors, risks and uncertainties as well as other

risks and uncertainties that could cause Moody’s actual results to differ materially from those contemplated, expressed, projected, anticipated or implied in the

forward-looking statements are currently, or in the future could be, amplified by the COVID-19 outbreak and are described in greater detail under “Risk Factors” in

Part I, Item 1A of the Company’s annual report on Form 10-K for the year ended December 31, 2019, and in other filings made by the Company from time to time

with the SEC or in materials incorporated herein or therein. Stockholders and investors are cautioned that the occurrence of any of these factors, risks and

uncertainties may cause the Company’s actual results to differ materially from those contemplated, expressed, projected, anticipated or implied in the forward-

looking statements, which could have a material and adverse effect on the Company’s business, results of operations and financial condition. New factors may

emerge from time to time, and it is not possible for the Company to predict new factors, nor can the Company assess the potential effect of any new factors on it.

Disclaimer

May 6, 2020 3

Table of Contents

1. Moody’s Overview

2. Financial Overview

3. Capital Markets Overview

4. Moody’s Investors Service (MIS)

5. Moody’s Analytics (MA)

6. Appendix

1 Moody’s Overview

May 6, 2020 5

Provides financial

intelligence and analytical

tools supporting our

customers’ growth, efficiency

and risk management

objectives

Solutions address diverse

needs and customers

Extending brand into new

markets and deepening

customer relationship

Leading global provider of

credit rating opinions,

insight and tools for

financial risk measurement

and management

Independent provider of

credit rating opinions and

related information for over

100 years

Proven ratings accuracy

and deeply experienced

analysts

Expanded sales and

marketing activities in

Commercial group

Revenue of

$5.0 billion

Adjusted

Operating Income

of $2.4 billion

MIS

77%

MA

23%MIS

60%

MA

40%

Note: Financial data for the trailing twelve months ended March 31, 2020.

Company Overview

Adjusted

Operating Margin

MIS

59.4%

MA

28.1%

May 6, 2020 6

Moody’s Stakeholder Engagement

Employees Customers Communities Policymakers

» Employee safety and

wellbeing remains our priority

» Successful enactment of

business contingency plans

has resulted in over 11,000 of

our global workforce working

from home

» Monitoring situation on a

local level and aligning our

work processes with

guidance from relevant

authorities

» “Return to work” planning

well underway

» Dedicated

microsite showing research

and analytics from both

MIS and MA

» Engaging with customers

through virtual meetings as

well as near daily webcasts

» Creating innovative

products and services

to assist customers and

market participants

» Focusing on areas

where we can leverage

our core business expertise

to help the communities in

which we operate

» Providing virtual

volunteering opportunities

to our employees across

the globe

» Providing global and local

grants for humanitarian aid

and to address the impact

of COVID-19 on small

businesses and education

systems.

» Increased dialogue with

government officials to

share insights, provide data

and resources

» Regular interactions with

fiscal and monetary

authorities to enhance

efficacy of stimulus

programs

» Moody’s breadth and depth

of data and expertise

across economic and

market views; credit, KYC,

ESG and other risk

measurements- and related

software tools- makes it a

natural partner for

policymakers

Supporting our stakeholders

during COVID-19 crisis

May 6, 2020 7

Moody’s Strategic Priorities

Enhance technology infrastructure to enable automation, innovation and efficiency

Foster employee engagement and creative solutions through our diverse workforce

and inclusive environment

Private Co.

Data / SME

Business Adjacencies

ESG Cyber RiskCommercial

Real Estate

Emerging

Markets

Private Co.

Data / SME

Regional Expansion

Integrated Risk

Pyramid

Asia-

Pacific

Latin

AmericaEMEA

May 6, 2020 8

Key Business Development and Growth Initiatives

Better decisions through unique and powerful customer solutions

Know-Your-Customer

(KYC)

Environment, Social

and Governance (ESG)

Commercial Real Estate

(CRE)

WORLD CLASS KYC SOLUTIONS

BvD and RDC recognized as

category leaders in new Chartis

Research report1

Integration of RDC on-track

Unique data assets and AI

improve speed and effectiveness

in identifying risks

NEW CRE PLATFORMS

Launched new REIS website with

dedicated COVID-19 topic page

Integrating Moody’s data and

analytics including ratings,

proprietary commercial location

scores and 427 physical risk

scores

EXTENSIVE ESG CAPABILITIES

~50 Q1 mandates for sustainability

ratings, sustainability-linked loans and

second party opinions for labeled bonds

Leveraging data and analytics

to support new value propositions

» Ratings & research

» Climate and credit models

» Scenario projections

» Portfolio attribution tools1. Chartis Research report: KYC/AML Data Solutions, 2020 Market and Vendor Landscape.

May 6, 2020 9

Drivers of Sustainable Corporate ValueIntroduced Sustainability Disclosures in our Public Filings

1. Carbon Disclosure Project.

2. While the Company reports its financial results in accordance with GAAP, financial performance targets and results under the Company’s incentive plans are based on adjusted financial

measures. These metrics and the related performance targets are relevant only to Moody’s executive compensation program and should not be used or applied in other contexts.

3. This measure is a qualitative assessment of strategic and operational metrics tied to key non-financial business objectives certified by the Compensation & Human Resources Committee at

the beginning of the performance period. The Committee assessed the achievement of the metric by evaluating performance against the following objectives: (i) new sources of growth; (ii)

quality assurance and controls; (iii) operating effectiveness and efficiency; (iv) people and culture; (v) risk management; and (vi) enabling technologies and capabilities.

Executive compensation metrics include2:

» Moody’s Corporation EPS and operating income

» MIS operating income and ratings performance

» MA operating income and sales

» Strategic & operational3

EN VI R O N M E N TA L

» Measurement of carbon

emissions and identification

of opportunities to reduce

indirect GHG emissions

» Expansion of ESG

products and services

» CDP1 participation

» Verifiably carbon neutral in

2019

SOC I A L

» Support a diverse

and inclusive workplace

» Active global community

and philanthropic involvement

» Robust data security

and privacy practices

» Fair compensation practices and benefits packages

» Recognized by Working Mother’s list of 100 Best

Companies

GOVER N A N C E

» Professional integrity

» Systematic risk management

» Diverse Board membership

and skill sets

» Separate CEO and

Chairman positions

» Active stockholder

engagement

May 6, 2020 10

CSR and Sustainability Initiatives

Remain a Focus

We drive progress and measurable impact in

our complex and changing world by building

more inclusive economies, stronger communities

and an environmentally sustainable future.

Empowering people

with financial knowledge

Activating an environmentally

sustainable future

Helping young people

reach their potential

Pathway to Prosperity

» Helping business advisors and, ultimately, their

clients better understand cash flow management

Technoserve

» Serving the developing world to build

competitive farms, businesses and industries

Finance Forward Latin America 2019

» Through Moody’s Local, collaborated with

Reshape Tomorrow™ partner Village Capital

» Supporting the social, environmental and

financial health of Latin American communities

» Continually seek to improve Moody’s impact on

the planet

Energy Use and Travel/Commuting1

» 10% reduction in electricity use year-over year;

16% reduction in use per employee

» 11% renewable energy use

» 75% miles commuted using public

transport or carpool

Grants: Prioritize organizations with a mission

of environmental sustainability

» Instituto Perene – a nonprofit dedicated to

promoting development while protecting natural

resources in rural Brazil

» Future Food Institute – Improve and enrich

degraded land in Brazil while creating jobs for

forest workers

» We work with schools and nonprofits around

the world to prepare students ages 15–24

for successful careers in finance, technology

and economics

» Moody’s provides mentorship initiatives, skills

development programs, internships and other

educational opportunities

Urban Scholars Widening Access Programme

» Funded and supported by Moody’s

for 15 years.

1. Data per Moody’s 2019 CSR report.

2 Financial Overview

May 6, 2020 12

Long-Term Growth Opportunities

Three Levers to Achieve EPS Growth

Note: Long-term growth opportunities presented on this slide are on average over time.

1. Assumes no material change in effective tax rate, foreign exchange rates, leverage profile and/or capital allocation policy.

2. Subject to market conditions and other ongoing capital allocation decisions.

May 6, 2020 13

$2.3 $2.4 $2.8 $2.7 $2.9

$1.2 $1.2$1.4 $1.7 $2.0

$0.0

$1.0

$2.0

$3.0

$4.0

$5.0

$6.0

2015 2016 2017 2018 2019 2020F

$ B

illio

ns

MIS Revenue MA Revenue

$4.8

2

$3.5 $3.6$4.2

$4.4

$1,109 $1,144

$664

$1,370$1,606

$1,200 - $1,400

$500

$700

$900

$1,100

$1,300

$1,500

$1,700

2015 2016 2017 2018 2019 2020F25

Adjusted Diluted EPS3Revenue1

mid-single-digit

% decline

$4.71 $4.94$6.07

$7.39$8.29

$2.00

$3.00

$4.00

$5.00

$6.00

$7.00

$8.00

2015 2016 2017 2018 2019 2020F

Free Cash Flow3

1

2

Financial Performance

1. Totals may not sum due to rounding.

2. Guidance as of April 30, 2020.

3. These figures are adjusted measures. See appendix for reconciliations from adjusted financial measures to U.S. GAAP.

4. 2015 – 2017 operating and adjusted operating margins have been restated to conform to the new presentation for pension expenses.

5. Reflects reduction by $701 million net of tax settlement charge.

$ Millions

$7.80

to

$8.40

Operating Margin4

42.8

%

18.1

%

43.3

%

42.0

%

41.4

%

46.0

%

45.9

%

47.6

%

47.6

%

47.4

%

0%

10%

20%

30%

40%

50%

60%

2015 2016 2017 2018 2019 2020F

Operating Margin Adj. Operating Margin

46%

-48%

41%

-43%

2

3

May 6, 2020 14

Accelerate Decelerate

Global fiscal support and

monetary stimulus actions

COVID-19 declared a pandemic

by the World Health Organization

Wave of investment grade capital

raising for liquidity purposes

Shelter-in-place policies implemented

across most of the world

Over 30 million people in the U.S. filed for

unemployment benefits over the last 2 months

VIX index spiked north of 80

Record low oil prices

U.S. HY spreads widened to north of 1,000 bps;

spreads on Aaa portions of CLOs reached ~300 bps

Macro Environment Informing Our Outlook

Note: Outlook is as of April 30, 2020.

1. Assumes 2Q20 peak unemployment of 12% - 17%.

2. Peak default rate. Represents one year forecast ending March 2021.

Sources: “Default Scenarios as Coronavirus-Induces Economic Turmoil

Intensifies”, “March 2020 Default Report” and “Global Macro Outlook 2020-

2021 (April 2020 Update) Moody’s Investors Service.

2020 GDP

U.S. -5.7%

Europe -6.5%

Benchmark interest

rates remain low;

high yield spreads

remain >700 bps

Full year average

2020 U.S.

unemployment rate of

~10%1

High yield default

rate of 11%-16%2

BASE CASE ASSUMPTIONS

Expect economic

recovery late 3Q/4Q 2020

CHANGES SINCE MARCH 11TH

May 6, 2020 15

56%

44%

Recurring Transaction

1Q 2020 TTM Revenue: $5.0 billion

Moody’s Corporation Financial Profile

53%

47%

U.S. Non-U.S.

Full Year 2020 Guidance as of April 30, 20202

Revenue • decline in the mid-single-digit % range

Operating Expenses • decline in the mid-single-digit % range

Operating Margin • approximately 41% - 43%

Adjusted Operating Margin3 • 46% - 48%

Effective Tax Rate • 19.5% - 21.5%

Diluted EPS • $7.25 - $7.85

Adjusted Diluted EPS3 • $7.80 - $8.40

1. Includes trailing twelve months of professional services revenue. Subsequent to the divestiture of MAKS in 2019, revenue from the Moody's Analytics Learning Solutions ("MALS") unit,

which previous to 2020 was reported in the Professional Services line of business ("LOB"), will now be reported as part of the RD&A LOB.

2. See press release titled “Moody's Corporation Reports Results for First Quarter 2020” from April 30, 2020 for Moody’s full 2020 guidance.

3. These metrics are adjusted measures. See Appendix for reconciliations from adjusted financial measures to U.S. GAAP.

Note: The revenue reclassifications of REITs to Corporate Finance from Structured Finance and the FACT product from RD&A to ERS are reflected in the full year (FY) calculations.

CFG32%

SFG8%

FIG10%

PPIF9%

MIS Other1%

RD&A1

29%

ERS11%

MA

MIS

May 6, 2020 16

$1,098

$739

$200 $203

$991

$272

$285

$290 $337

$378

$0

$400

$800

$1,200

$1,600

150

170

190

210

230

2015 2016 2017 2018 2019

$ M

illions

Mill

ions o

f S

hare

s

Share Repurchases (R) Dividends Paid (R)

Shares Outstanding (L)

$1,370 $1,369

Disciplined Approach to Capital Allocation

Share Repurchases and Dividends Paid Annualized Dividend Per Share

$1,024

Investing in Growth Opportunities Return of Capital

Reinvestment

Invest in existing

businesses to

support organic

growth

Acquisitions

Evaluate carefully to

make sure aligned

with strategy and

market evolution

Dividends

Grow dividend in line

with earnings; target

25% - 30% payout1

Share Repurchase

Follow reinvestment,

dividends and

acquisitions in capital

allocation prioritization

$1.36$1.48 $1.52

$1.76

$2.00

$2.24

2015 2016 2017 2018 2019 2020F2

$490 $540

1. Dividend payout ratio is defined as total dividends paid/adjusted net income.

2. Annualized dividend total, based on first quarter dividend declared on April 20, 2020.

3. Share repurchases have been temporarily suspended as of April 30, 2020. Year-to-date share repurchases as of March 31, 2020 is approximately $253 million.

3

3 Capital Markets Overview

May 6, 2020 18

Coronavirus disrupts real economy, impact to credit market may be delayed

Credit Market Update

1. MIS rated issuance.

COVID-19 PANDEMIC

» Abrupt shock

» Heroic health community response

» Significant human toll

» Policy responses: social distancing

implemented

– Reopening tactics under review

as infection curves flatten

GEOPOLITICAL IMPACT

» Global fiscal easing

– Trillions more in loan

guarantees

» Oil prices plummet on lack

of global demand/storage

capacity and production disputes

MACROECONOMIC RESPONSE

» Aggressive worldwide central bank rate cuts

» U.S. Fed supports mortgage, investment

grade, fallen angel and high-yield ETF

markets

» Various other central bank asset purchase

programs and new credit facilities instituted

» IMF: -3% worldwide 2020 GDP

» Job losses and furloughs

» Record March issuance1

» Opportunistic capital raising

bolsters balance sheet liquidity

» Commercial paper access limited

Investment grade bonds High yield bonds

» Significant spread widening, though

subsequent tightening

» Access remains for fallen angels

and higher-end of spec grade

Leveraged loans

» Revolver draw-downs bolster liquidity

» Issuance market shutters

» Fund outflows and lack of

CLO demand

CREDIT MARKETS

REAL ECONOMY

May 6, 2020 19

U.S. Investment Grade Drives Issuance in 1Q20Investment grade issuance surged in March, while leveraged finance stalled

Note: MIS rated issuance. Investment Grade and High Yield Bond spreads in basis points. Issuance figures displayed in billions.

$41

$65 $66

$23

$12

$26

$41

$27

$39

150 130 130

460 410 400

Jan-19 Feb-19 Mar-19

1Q 2019

$24

$57

$160

$37 $29

$4

$87

$56

$14

100 110260

360390

790

Jan-20 Feb-20 Mar-20

1Q 2020

Investment grade bond Bank loan High-yield bond spreadHigh-yield bond Investment grade bond spread

May 6, 2020 20

Debt Leverage and Interest Coverage in

North America and Europe

Credit Metrics: North American Speculative Grade Companies

1. Trailing twelve months ended December 31, 2019.

Note: Historical figures may change due to timing differences in issuer reporting deadlines. Source: Moody’s Investors Service.

4.6x 4.6x 4.6x 4.4x 4.3x 4.4x 4.6x 4.8x 5.0x 5.1x 5.2x 5.4x 5.3x 5.2x

2.9x 2.6x 2.4x 2.7x 3.0x 3.1x 3.0x 3.0x 3.0x 2.9x 3.0x 3.0x 2.8x 2.8x

0.0x

1.0x

2.0x

3.0x

4.0x

5.0x

6.0x

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Inte

rest C

ove

rag

e

Debt / EBITDA EBITDA / Interest Expense

Credit Metrics: European Speculative Grade Companies

5.0x

4.1x4.5x 4.8x

4.1x 4.2x 4.4x 4.6x 4.7x 4.5x 4.6x 4.6x5.2x 5.0x

2.9x 2.9x 2.6x 2.8x3.4x 3.2x 3.0x 3.0x 3.1x 3.3x 3.5x 3.7x 3.5x 3.8x

0.0x

1.0x

2.0x

3.0x

4.0x

5.0x

6.0x

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Inte

rest C

ove

rag

e

Debt / EBITDA EBITDA / Interest Expense

1

1

May 6, 2020 21

Default Rate Forecast Rises in Wake of

Unprecedented TurmoilDefault Rates for Speculative-

Grade Corporate Rated Issuance1

1. Moody’s rated corporate global speculative grade default historical average of 4.1% from 1983 through March 31,2020. 2020 forecast for TTM ended December 31, 2020. Peak

global default rate downside case forecast of ~16%; represents one year forecast ending March 2021.

2. Covenant data for European bonds represent a three quarter rolling average, North American loans and bonds represent a two quarter rolling and a three month rolling average,

respectively.

Source: Moody’s Investors Service.

4.23x

4.47x

3.84x

2.0

2.5

3.0

3.5

4.0

4.5

5.0

2012 2013 2014 2015 2016 2017 2018 2019

U.S. Loans U.S. Bonds European Bonds

Speculative-Grade Covenant

Quality Indicators2

Weakening

Improving

11%

13%

8%

0%

2%

4%

6%

8%

10%

12%

14%

16%

Global U.S. Europe

4.1% global

historic average1

May 6, 2020 22

1. Non-financial corporates.

2. Source: Moody’s Investors Service, January 2020. Data represents U.S. & Canadian MIS rated corporate bonds & loans.

3. Source: Moody’s Investors Service, July 2019.

203 245 253 199 193

3058 97

127 142858

140 239342

2020 2021 2022 2023 2024

$ B

illio

ns

Speculative Grade Bank Loans

Speculative Grade Bonds

Investment Grade

Refunding Needs1 Support MIS

Long-term Fundamentals

$241$360

$490$565

338 327 356 349

28 3984 7239 46

64 69

2020 2021 2022 2023

$ B

illio

ns

Speculative Grade Bank Loans

Speculative Grade Bonds

Investment Grade

$405 $412

$504 $490

$677

>$2.3 Trillion in Debt Maturities: North America Moody’s-Rated Corporate Bonds and Loans2

>$1.8 Trillion in Debt Maturities: EMEA Moody’s-Rated Corporate Bonds and Loans3

May 6, 2020 23

$1,972

$3,466

$1,000

$1,300

$1,600

$1,900

$2,200

$2,500

$2,800

$3,100

$3,400

2012 2013 2014 2015 2016 2017 2018 2019 2020

$ B

illio

ns

Refunding Needs Have Grown Strongly Over Time

Next Four Years North America and EMEA Total Refunding Needs1 as of:

1. Amount reflects total maturities identified below.

Source: Moody’s Investors Service. U.S. and EMEA refunding needs reports January 2012 – January 2020.

Note: Data represents U.S., Canadian and European MIS rated corporate bonds & loans. Canada data not available before 2015.

May 6, 2020 24

Debt Refinancing and M&A are Most Frequently

Stated Uses of Proceeds

Uses of Funds from USD High Yield Bonds and Bank Loans1

62%

0

83%

71% 74%78%

71%65%

54%64%

71%62%

68%

0

73%

63%

0

19%

31% 30%25%

31%41% 54%

41%

39%

49%35%

0

35%

22%

0

11%

7% 8% 8%7% 8%

5% 6%5% 5% 7%

0

3%

12%

0

4%

18% 17% 18% 22% 20% 16% 17% 13% 15% 13%

0

10%

1999 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 1Q20

% o

f M

en

tio

ns

Debt Refinancing M&A Capital Spending Shareholder Payments

1. Percent of mentions for each respective period in bond issue or bank loan program tranche documents. Excludes issues of less than $25 million and general corporate purposes.

An issue can have multiple purposes and, as a result, percentages do not sum to 100%.

Source: Moody’s Analytics.

May 6, 2020 25

Disintermediation of Credit is an Ongoing Trend in the Global Capital Markets

European Non-Financial Corporate

Bonds vs. Bank Loans Outstanding

4

8

%

€0

€1,000

€2,000

€3,000

€4,000

€5,000

€6,000

€7,000

€ B

illio

ns

Bonds Loans

U.S. Non-Financial Corporate

Bonds vs. Bank Loans Outstanding

4

8

%

$0

$1,500

$3,000

$4,500

$6,000

$7,500

$9,000

$ B

illio

ns

Bonds Loans

74%

26%

50%

50%

Sources: ECB, Federal Reserve, BarCap Indices. Europe bank loan data includes Eurozone and UK bank loans. Europe bond data includes euro and sterling denominated bonds.

European data is through February 2020 and U.S. data is through March 2020.

4 Moody’s Investors Service

May 6, 2020 27

36%

64%

Recurring

Transaction


Public, Project,

& Infrastructure

Finance

15%

Financial

Institutions

16%

Corporate

Finance

53%

Structured

Finance

14%

MIS Other

1%

60%

40%

U.S.

Non-U.S.

» 34% recurring revenue



Note: The revenue reclassification of REITs to Corporate Finance from Structured Finance is reflected in the full year 2019 calculations. Percentages have been rounded and may not

total to 100%.


Moody’s Investors Service Financial Profile

May 6, 2020 28

» Issuance2 expected to decline in the low-double-digit percent range from $4.6T in 2019

- Non-financial corporate investment grade issuance to increase ~10%; high yield bonds to decline ~20%;

leveraged loans to decline ~40%

» Approximately 600 first time mandates

» Refinancing and liquidity driven issuance, reduced M&A activity

» Less favorable issuance mix

» Recurring revenue provides ballast

» Lower incentive compensation and additional cost efficiency initiatives support margin


2. Global debt issuance. Excludes sovereign debt.

MIS Guidance: COVID-19 Lowers Outlook1

Key drivers of MIS FY 2020 outlook1

High-single-digit

% decline

$2.9B

$1,700

$1,900

$2,100

$2,300

$2,500

$2,700

$2,900

2019 2020F

Revenue

1

Adjusted Operating Margin1

58.0%55% - 57%

2019 2020F1

May 6, 2020 29

The Benefits of a Moody’s Rating

Investors seek our opinions and

particularly value the knowledge of our

analysts and the depth of our research.

Wider access

to capital

Tangible

financing benefits

Planning

and budgeting

Transparency,

credit comparison

and market stability

Responsive to

investor demand

Moody’s opinions on

credit are broadly used

by institutional investors

throughout the world,

making an issuer’s debt

more attractive to a wider

range of potential buyers

The credibility of

Moody’s ratings may

allow rated issuers to

enter the capital markets

more economically

through a lower cost

of capital

Helps issuers formulate

internal capital plans

and funding strategies

Signals a willingness

by issuers to be

transparent and

provides issuers

with an independent

assessment against

which to compare

their own creditworthiness

Moody’s ratings are

the most used by investors,

(when multiple agencies

are used), who have

acknowledged our track

record of accuracy

May 6, 2020 30

» We remain focused on analytical expertise and our credit methodologies to provide predictive,

predictable and transparent ratings

» Accuracy reinforces investor demand pull

» April 2020 ratings review reports provide update of rating actions by sector3

2%6%7%

16%19%

26%32%

44%

63%

87%88%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Aa

a

Aa

1

Aa

2

Aa

3

A1

A2

A3

Ba

a1

Ba

a2

Ba

a3

Ba

1

Ba

2

Ba

3

B1

B2

B3

Ca

a1

Ca

a2

Ca

a3

Ca

_C

0%

2%

5%

8%

0%

1%

2%

3%

4%

5%

6%

7%

8%

9%

Aaa Aa A Baa Ba B

1 Source: Moody’s Investors Service. The data in the chart above shows the ten-year cumulative default rates by rating from January 2009, through January 2018 of fundamental Moody’s

rated universe globally. Rating category is based on senior unsecured rating (or equivalent) of the issuer.

2 Source: Moody’s Investors Service: Global multi-year cumulative WR-adjusted impairment rates by original rating,1993-2018.

3 Corporate Finance and Financial Institutions Ratings Review Summaries published April 1, 2020 and April 15, 2020, respectively.

Ten-Year Cumulative 1993-2018 CLO

Impairments2

Ten-Year Default Rates by Rating for 2009-

2018 Cohort: Non-Financial Corporates1

Rating Performance Drives Investor Confidence

May 6, 2020 31

Illustrative Value of a Moody’s Rating

Example: 10 year $500 million corporate bond

$15 million in total interest expense

vs.

lifetime cost of a rating

$500,000,000

x 4.3%

= $21,500,000

x 10 years

= $215,000,000

Unrated Rated by Moody’s

$500,000,000

x 4.0%

= $20,000,000

x 10 years

= $200,000,000

Bond

Interest rate

Annual interest payments

Tenor

Lifetime interest expense

Note: Illustrative spread differential based on feedback from syndicate desks and FBR & Co. research on Moody’s Corporation (January 2014) which stated that obtaining a Moody’s

rating typically saves approximately 30 basis points per year for investment grade issuers. Many factors go into the pricing of a bond.

May 6, 2020 32

Americas APACEMEA

» 29,600+ rated

companies and

structured deals

» $35+ trillion total

debt rated

» 16,800 research

publications

» Offices in 10 cities*

» 4,700+ rated

companies and

structured deals


debt rated

» 6,700 research

publications


» 2,200+ rated

companies and

structured deals


debt rated

» 4,100 research

publications


1. Institutional Investor Survey.

Source: Moody’s Investors Service.

All data as of January 20, 2020, except Research Data covers the period January 1, 2019 – December 31, 2019.

All numbers are rounded other than those marked *

~15 Years Lead/Senior Analyst

tenure

#1 Global Credit

Rating Agency

20191

#1 U.S. Credit

Rating Agency

2012-20181

Broad Coverage Serves Global Needs

May 6, 2020 33

Continue to Invest in Key International Markets

Asia Pacific

» China: Successful joint venture with CCXI and

robust cross-border operations

» South Korea: Full ownership of KIS subsidiary,

a leading provider of domestic credit ratings in

South Korea

» India: Majority stake in ICRA serves growing

domestic Indian bond market

Latin America

» Launched Moody’s Local, a new platform that will

provide domestic credit ratings and research in

Peru, Panama and Bolivia1

» Minority investment in ICR Chile deepens

Moody’s presence in dynamic and expanding

market

EMEA

» Opened Moody’s offices in Saudi

Arabia and Lithuania

2009 2019

Emerging Asia Latin America Middle East

CEE/CIS Africa

Revenue in Emerging Markets

$94M

$342M

EMEA

1. Subject to regulatory approvals. Moody’s Local ratings represent forward-looking rank-orderings of creditworthiness within the domestic market of a specific country. They are not

comparable between countries, and are distinct from and independent of the opinions of MIS and its global ratings.

May 6, 2020 34

0

10

20

30

40

50

US China Japan UK France

Total debt securities outstanding 2012–20191

2012 2019

Moody’s in Greater China

» Moody’s participates directly in the cross border China issuance

market through MIS and in the domestic market through a 30%

interest in CCXI

» Long-term growth prospects enabled by participation in the

ongoing development of China’s domestic credit markets

» Continuing to foster constructive relationships and partnerships

with issuers, regulators and other market participants

Estimated China Ratings Market Size: Domestic and Cross Border2

58%42%

Rest of Market CCXI's Share

63%

37%

Rest of Market Moody's Share

Domestic Market

~$280M

Cross Border Market

~$290M3

2nd Largest Onshore Bond Market at $14 Trillion2019 Revenue and Attributable Income

from China3

1%0%

-2%

3%

20%

1. Source: Bank for International Settlements (latest data available as of 2Q19).

2. Revenue as of full year 2019; USD 1 = RMB 6.92 RMB exchange rate as of December 31, 2019 is used for conversion for domestic CRAs’ estimated revenue. Note: These are high

level estimates based on MIS & CCXI full year 2019 revenue/market coverage in domestic market; in cross border, market share is coverage/sum of coverage for three major CRAs.

3. Greater China: Mainland, Hong Kong and Macau.

$176

$17 -

50

100

150

200

MIS Cross Border andTotal MA

Attributable Income fromCCXI

$ M

illio

ns

Total MA Revenue

MIS Cross Border Revenue

Attributable Income from CCXI

» Moody’s participates directly in the cross border China issuance

market through MIS and in the domestic market through a 30%

interest in CCXI

» Long-term growth prospects enabled by participation in the

ongoing development of China’s domestic credit markets

» Continuing to foster constructive relationships and partnerships

with issuers, regulators and other market participants

May 6, 2020 35

RESEARCH2

38,000+Credit ratings

ESG assessments integrated

into Moody’s Investors

Services (MIS) credit ratings

5,000+ESG assessments

Covering 266 unique

ESG data points

6,000+Climate risk scores

Spanning countries, counties,

cities, companies & real estate

assets globally

200+Sustainable bonds

Assessed globally

30+Years of ESG experience

Our affiliate Vigeo Eiris has

been a pioneer in ESG

analysis since the 1990s

300+MIS research reports

Related to ESG

considerations in 2019

20+ESG related events

Delivered in 2019 through

Moody’s global event program

MIS ESG Opportunity:

Driving Expansion Beyond Credit

ANALYSIS

» Moody’s forecasts global green,

social and sustainability bond

issuance to be $275 to $325

billion in 20201

» Our minority stake in SynTao

Green Finance’s China-specific

datasets enhance Moody’s

global ESG research and data,

and complement Moody’s

majority ownership of Vigeo

Eiris, a leading provider of

ESG research, data and

assessments, and of Four

Twenty Seven, a leader in

climate data and risk analysis.

» Moody’s offers a comprehensive

suite of solutions for ESG

assessments

OUTREACH

» ~200 media engagements

in 1Q20 driven by Moody’s

Events and MIS research

» MIS maintains a leading

share of voice in key global

media with 58%

» Strategic relationships with

industry organizations and

influencers across sustainable

finance

» New Moody’s ESG &

Climate Risk microsite:

moodys.com/esg

1. Forecast as of May 5, 2020.

2. As of November 2019, combined for all Moody’s entities including affiliates.

May 6, 2020 36

Research report on exposure to future heat

stress for U.S. counties» Relative projections of future heat stress for each U.S.

county to demonstrate high risk areas provided by 427

Research report on

public safety power

shutoffs in California» Maps of heat/water stress

in California provided by 427

Near term

MIS publishing report on the climate change scenarios» Climate scenario expertise on the physical impacts of the

different scenarios provided by 427

427 data to be incorporated into tools

for the U.S. PFG team» Data and scores for all U.S. Municipalities from 427

will either complement or replace data from prior sources

» 427 includes greater amount of risk hazards than prior sources

REIS Network data partner

Joint by-line article: the changing climate

of credit risk management

Integrating 427 Climate Analytics

to Better Inform the Market

+ +

5 Moody’s Analytics

May 6, 2020 38

Research, Data and Analytics1

73%

Enterprise Risk Solutions

27%

Moody’s Analytics Financial Profile

86%

14%

Recurring

Transaction

42%

58%

U.S.

Non-U.S.

» 98% recurring revenue2

» ~ 96% retention rate3



1. Includes trailing twelve months of professional services revenue.

2. 98% recurring revenue for RD&A as reported, including MALS for 1Q20. It does not include MALS or other professional services revenue prior to 1Q20.

3. As of FY 2019. Excludes Bureau van Dijk.

Note: The revenue reclassification of the FACT product from RD&A to ERS, MALS to RD&A and the MAKS sale is reflected in the trailing twelve month calculations.

May 6, 2020 39

MA Guidance: Continue to Expect

Revenue Growth and Margin Expansion1


» Strong recurring revenue moderates COVID-19 impact

» MAKS divestiture weighs on revenue growth, partially offset by RiskFirst, Deloitte ABS, RDC acquisitions

» FY revenue guidance including an unfavorable 2% - 3% impact from FX and inorganic activity

» RD&A: Strong demand for BvD data and tools, continued upgrades for research platform, and data feeds

» ERS: Strength in software sales and delivery; modest impact from delays of IFRS 17 and CECL implementations

» Lower incentive compensation and additional cost efficiency initiatives support margin

2019 2020F

$2.0B

Revenue

Mid-single-digit

% growth

1

27.8%

2019 2020F

Approximately 30%

Adjusted Operating Margin1

1

Key drivers of MA FY 2020 outlook

May 6, 2020 40

Moody’s Analytics has Several Platforms for Growth

$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

$1,600

$1,800

$2,000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

$ M

illio

ns

Moody’s Analytics

2019 Revenue: $1,954m

2008 – 2019 CAGR: +12%

(~60% organic)

Professional Services1

2019 Revenue: $159m


2019 Revenue: $522m

2008 – 2019 CAGR: +14%

(~68% organic)

Research, Data & Analytics

2019 Revenue: $1,273m

2008 – 2019 CAGR: +11%

(~62% organic)

Revenue More Than Tripled Since Inception

Note: Individual line of business revenues may not add up to total Moody’s Analytics revenue due to rounding.

1. Subsequent to the divestiture of MAKS in 2019, revenue from the Moody's Analytics Learning Solutions ("MALS") unit, which previous to 2020 was reported in the Professional

Services line of business ("LOB"), will now be reported as part of the RD&A LOB. Prior periods have not been reclassified as the amounts were not material.

May 6, 2020 41

89%1

Recurring

Revenue

~50%Revenue from sales

closed prior to 1/1/2020

Revenue components 2020 Current Outlook2

Renewal yield might be affected

~10%Revenue from new

sales in 2020

~40%Revenue from

scheduled renewals

Existing contractual obligations

being met by MA and Customers

Social distancing preventing face

to face selling efforts

2019 Actuals

Research ~96%

ERS ~94%

BvD ~92%

94.6% 95.2%

2012 2019

94.3% - 8 year low point

96.0% - 8 year high point

Note: Recurring refers to the repeatable nature of sales or revenue, as a result of a subscription-based fee model. Product retention

rate refers to the dollars retained from existing customers on an annual basis.

1. Full Year 2019, excluding MAKS.


MA’s Strong Retention Rates Mitigate

COVID-19 Impact

Stable Retention of Recurring Base Ensures Predictable Revenue

May 6, 2020 42

Sales Strategies Adapting to COVID-19

Sales Activities

Shifting

Mar-19 Mar-20 Mar-19 Mar-20

Number of

In-Person Meetings

Number of

Virtual Meetings

Down 50%

Up +400%

Converting selling

activities from

face-to-Face to

virtual

Updating sales campaigns

Observing some impact

on new business pipeline

» Expect sales cycles to take

longer than 9-12 month

historical average

» Business development

activities are seasonal,

COVID-19 interrupting

important period

FOR CURRENT CUSTOMERS…

» Emphasis on pro-active

customer support during crisis

to maintain retention rates

» Adding new content and

analytics to address shifting

customer needs

FOR NEW CUSTOMERS…

» Test new value propositions

» Highlight COVID related

features

May 6, 2020 43

Expansion of ratings coverage

Production of insightful credit

analysis

New customers in

geographies with developing

debt capital markets

Expansion of data sets and

delivery options

Strong customer retention

RD&A: Subscription Growth Driven by Retention, Upgrades and Pricing & New Sales

Full

Year

2018

95.8% 109.7%9.1% 4.8%

Retained Base Upgrades and Price New Sales Business Base

Subscription Sales Growth(constant currency)

Full

Year

20

17

95.5% 109.4%8.2%5.7%


Note: The sales growth attributions presented on this slide are related to RD&A subscription sales on a constant currency basis and excludes Bureau van Dijk and Reis. Upgrades

reflect amendments to existing customer contracts. New Sales reflect new contracts with new and existing customers.

Full

Yea

r 201

9

96.2% 110.6%9.0%5.4%


Full

Year

2016

95.4% 110.2%8.0% 6.8%


May 6, 2020 44

Global Regulatory and Accounting Drivers for the

ERS Business

Source: Moody’s Analytics market research as of April 2020.

Note: *Regulation has been delayed/ cancelled to allow banks to focus their resources on navigating the coronavirus pandemic - please see below for details

The Basel Committee has delayed the implementation of outstanding capital standards - commonly referred to as “Basel IV” - originally set to be implemented on Jan. 1, 2022 - will now have an

implementation date of Jan. 1, 2023. Additionally, the Committee has decided to postpone the implementation of the revised G-SIB framework by one year, from 2021 to 2022. The EBA has delayed the EU-

wide stress test by one year to 2021. In Australia APRA has delayed the implementation of APS 220 on credit risk management by one year from January 2021, to January 2022.

EMEA

20192020202120222023 and beyond 2020 2021 2022 2023 and beyond

FRTB*

BoE/ PRA ST

TLAC

CVA review*

Revised IRB

approach CR*

FBO ST

CCAR /

DFAST

EU-wide ST*

SEC Liquidity rules

(ETF, mutual funds)

NCUA RBC

rule for large

credit unions

CECL

Vickers reform

Revised SA

operational risk*

Updated

Leverage Ratio*

CCAR /

DFAST

CCAR /

DFASTRevised

minimum capital

requirements for

MR*

Output floor*

Supervisory rating

system for LFIs

Revised G-SIB

assessment*

SCCL for large

banks

NSFR

NSFR

Minimum

Leverage

Ratio

BoE/ PRA BES

(Climate-related element)

CCAR /

DFAST

EU Sustainability

taxonomy

Interest Rate

Benchmark

Reform

EBA Guidelines on

Outsourcing

Agreements

SFTR regulatory

technical standards

EU “Banking Package”

CRR2, CRD5, BRRD2

and SRMR2

Incorporate ESG risks

into supervisory process

EU Investment

Firms Directive

and Regulation

EU MLD5

TLAC

IRRBB review

TLAC

New securitization

framework

New securitization

framework

Interest Rate

Benchmark Reform

Interest Rate

Benchmark

Reform

HLA requirement

Revised G-SIB

assessment*

Revised G-SIB

assessment*

Output floor*

Output floor*

CVA review*

CVA review*

Revised minimum

capital requirements

for MR*

Revised minimum

capital requirements

for MR*

Revised SA

operational risk*

Revised SA

operational risk*

Revised SA

market risk*

Updated

Leverage Ratio*

Updated

Leverage Ratio*

Revised IRB

approach CR*

Revised IRB

approach CR*

Revised

standardized

approach CR*

Revised

standardized

approach CR*

Revised

standardized

approach CR*

FRTB*

FRTB*

HLA

requirement

HLA

requirement

Climate Change

ST

CCAR /

DFAST

BoE/ PRA ST

BoE/ PRA

ST

DNB

Climate

ST

Credit Risk

Management*

Revised SA

market risk*

Revised SA

market risk*

6 Appendix

May 6, 2020 46

Corporate Finance: Revenue and Issuance

$134 $139 $135 $145 $128 $140 $140 $139 $145

$87 $72 $55 $57 $97 $96 $106 $80

$144$58 $59

$39 $19

$57$68 $57

$75

$75$110 $121

$78 $70

$73$84 $89

$68

$89

$0

$50

$100

$150

$200

$250

$300

$350

$400

$450

1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20

$ M

illio

ns

Revenue1: Mix by Quarter

Other Investment Grade Speculative Grade Bank Loans

$275 $312 $363 $420 $421 $425 $488 $554 $547$137

$197$193

$230 $305 $262$301

$271$379

$120

$194$229

$219$183 $181

$254 $175

$258

$120

$155

$212$242 $204 $254

$349 $379

$313

$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

$1,600

2011 2012 2013 2014 2015 2016 2017 2018 2019

$ M

illio

ns

Revenue1: Mix by Year


$312 $305$236 $221

$329 $314$370 $406 $431

$112 $94

$64$33

$105 $120$105

$162 $132$165 $210

$123$103

$100 $105$111

$108 $119$65 $72

$39

$28

$26 $25

$43

$50$55

$0

$200

$400

$600

$800

1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20

$ B

illio

ns

Issuance3: Mix by Quarter

Non-U.S. Speculative-Grade Bank LoansU.S. Speculative-Grade Bank LoansGlobal Non-Financial Speculative-Grade BondsGlobal Non-Financial Investment-Grade Bonds

$641 $750$1,125 $1,073 $1,043 $1,120 $1,192 $1,271

$1,074$1,419$293 $250

$329 $411 $405 $329 $311$426

$304

$492

$273 $330

$353$504 $425 $354 $414

$638

$601

$425$120

$247

$204

$144

$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

$ B

illio

ns

Issuance3: Mix by Year

Non-U.S. Speculative-Grade Bank LoansU.S. Speculative-Grade Bank LoansGlobal Non-Financial Speculative-Grade BondsGlobal Non-Financial Investment-Grade Bonds

2

2

1. Historical data has been adjusted to conform with current information and excludes intercompany revenue. The revenue reclassification of REITs to Corporate Finance from Structured Finance is

reflected starting from 1Q 2018.

2. Other includes: monitoring, commercial paper, medium term notes, and ICRA.

3. Sources: Moody’s Analytics, Dealogic. U.S. and Non-U.S. Speculative-Grade Bank Loans represent only Moody’s rated speculative-grade bank loans. Non-U.S. Speculative-Grade Bank Loan

Origination data available starting 2016. Note: Debt issuance categories do not directly correspond to Moody’s revenue categorization.

May 6, 2020 47

34% 35%44% 50%

40% 36% 36% 36% 38% 37% 32%

22% 19%

18%19%

20% 27% 25% 27% 22% 25% 32%

15% 15%13%

7%13%

16% 18% 15% 21% 17% 17%

28% 31% 26% 24% 28%20% 22% 23% 19% 21% 20%

0%

20%

40%

60%

80%

100%

1Q18 2Q18 3Q18 4Q18 FY18 1Q19 2Q19 3Q19 4Q19 FY19 1Q20


73% 73%65% 62%

69% 70% 71% 72% 69% 71% 75%

27% 27%35% 38%

31% 30% 29% 28% 31% 29% 25%

0%

20%

40%

60%

80%

100%

1Q18 2Q18 3Q18 4Q18 FY18 1Q19 2Q19 3Q19 4Q19 FY19 1Q20

Revenue1: Distribution by Recurring vs. Transaction

Transaction Recurring

Corporate Finance: Revenue Diversification

34% 35% 37% 36% 35% 32% 37% 34% 38% 35% 31%

66% 65% 63% 64% 65% 68% 63% 66% 62% 65% 69%

0%

20%

40%

60%

80%

100%

1Q18 2Q18 3Q18 4Q18 FY18 1Q19 2Q19 3Q19 4Q19 FY19 1Q20

Revenue1: Distribution by Geography

Non - U.S. U.S.

Revenue1: Distribution by Product

2

1. Historical data has been adjusted to conform with current information and excludes intercompany revenue. The revenue reclassification of REITs from Corporate Finance to

Structured Finance is reflected starting from 1Q 2018.

2. Other includes: monitoring, commercial paper, medium term notes, and ICRA.

Percentages have been rounded and may not total to 100%.

May 6, 2020 48

Structured Finance: Revenue and Issuance

$28 $28 $25 $26 $23 $26 $25 $25 $22

$24 $27$24 $24 $24 $24 $22 $26 $27

$21 $18$15

$24$18 $20 $18

$25$17

$43 $55

$51$47

$35$41

$40$32

$29

$1$1

$1$0

$1$1

$1 $1

$1

$0

$20

$40

$60

$80

$100

$120

$140

$160

1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20

$ M

illio

ns


ABS RMBS CMBS Structured Credit Other

$110 $98 $92 $91 $94 $97 $107 $99

$85$73 $76 $81 $85 $90 $98 $95

$95 $116 $122 $140 $133 $143 $78 $81

$91 $96$137

$135 $122$165

$196$148

$0 $0$0

$2 $2

$2 $2

$4

$0

$200

$400

$600

2012 2013 2014 2015 2016 2017 2018 2019

$ M

illio

ns


ABS RMBS CMBS Structured Credit Other

$319 $335 $317 $319 $292 $298 $337 $384 $348

$371$231 $189 $238

$200 $204$254

$270 $283

$36 $73

$120$114

$117 $94$120

$115 $145

$39$65

$94$159

$132 $116

$136$200 $153

$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

2011 2012 2013 2014 2015 2016 2017 2018 2019

$ B

illio

ns


ABS RMBS CMBS Structured Credit

$102 $89 $79$115

$65$90 $91 $103

$65

$62 $74$64

$70

$48

$87 $63$85

$67

$26 $27$26

$36

$16

$38$34

$57

$33

$36$64

$51

$49

$21

$49

$39

$44

$27

$0

$50

$100

$150

$200

$250

$300

$350

1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20

$ B

illio

ns


ABS RMBS CMBS Structured Credit



2. Sources: AB Alert, CM Alert, Moody’s Corporation. Debt issuance categories do not directly correspond to Moody’s revenue categorization.

Notes: ABS (Asset Backed Securitization) includes asset-backed commercial paper and long-term asset-backed securities. RMBS (Residential Mortgage Backed Securitization) includes covered bonds.

CMBS includes commercial mortgage-backed securities and commercial real estate CDOs. Structured Credit includes CLOs and CDOs.

May 6, 2020 49

Structured Finance: Revenue Diversification




Notes: ABS (Asset Backed Securitization) includes asset-backed commercial paper and long-term asset-backed securities. RMBS (Residential Mortgage Backed Securitization) includes covered bonds.

CMBS includes commercial mortgage-backed securities and commercial real estate CDOs. Structured Credit includes CLOs and CDOs.


63% 67% 64% 63% 64%56% 61% 55% 57% 58% 52%

37% 33% 36% 37% 36%44% 39% 45% 43% 42% 48%

0%

20%

40%

60%

80%

100%

1Q18 2Q18 3Q18 4Q18 FY18 1Q19 2Q19 3Q19 4Q10 FY19 1Q20



37% 37% 38% 37% 37% 39% 36% 36% 38% 37% 36%

63% 63% 62% 63% 63% 61% 64% 64% 62% 63% 64%

0%

20%

40%

60%

80%

100%

1Q18 2Q18 3Q18 4Q18 FY18 1Q19 2Q19 3Q19 4Q19 FY19 1Q20


Non - U.S. U.S.

24% 22% 22% 21% 22% 23% 23% 24% 23% 23% 23%

21% 21% 21% 19% 20% 23% 21% 21% 24% 22% 28%

18%14% 13% 20% 16%

18% 18% 17%23%

19%18%

37% 43% 44% 39% 41% 35% 37% 38%29% 35% 30%

1% 1% 0% 0% 0% 1% 1% 1% 1% 1% 1%

0%

20%

40%

60%

80%

100%

1Q18 2Q18 3Q18 4Q18 FY18 1Q19 2Q19 3Q19 4Q19 FY19 1Q20

ABS RMBS CREF Structured Credit Other

May 6, 2020 50

Financial Institutions: Revenue and Issuance

$77 $77 $73$63

$80 $85 $80 $76$86

$28 $33 $38

$15

$29 $28 $31 $31$30

$6$7 $6

$6

$4$10 $7

$5$6$3

$3 $3

$3

$3$3 $3

$3$3

$0

$20

$40

$60

$80

$100

$120

$140

1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20

$ M

illio

ns


Banking Insurance Managed Investments Other

$205 $228 $234 $242 $244 $240$300 $290

$320

$73$79 $89 $92 $96 $102

$102 $114$119

$17$19

$16 $19 $16 $17

$22 $25$25

$0$0 $0 $2 $9 $10

$13 $13$12

$0

$50

$100

$150

$200

$250

$300

$350

$400

$450

$500

2011 2012 2013 2014 2015 2016 2017 2018 2019

$ M

illio

ns



$1,266 $1,312$1,072

$1,247 $1,194 $1,187 $1,232 $1,248 $1,298

$79$137

$161

$197$136 $112

$183$74 $108

$0

$400

$800

$1,200

$1,600

$2,000

2011 2012 2013 2014 2015 2016 2017 2018 2019

$ B

illio

ns


Global Speculative Grade Financial Corporate Bonds

Global Investment Grade Financial Corporate Bonds

$411$339 $327

$170

$396$315

$279 $309

$396

$26$24

$20

$4

$29

$18

$27$34

$36

$0

$100

$200

$300

$400

$500

1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q 19 4Q19 1Q20

$ B

illio

ns


Global Speculative Grade Financial Corporate Bonds

Global Investment Grade Financial Corporate Bonds

1. Historical data has been adjusted to conform with current information and excludes intercompany revenue.

2. Sources: Moody’s Analytics, Dealogic. Note: Debt issuance categories do not directly correspond to Moody’s revenue categorization.

May 6, 2020 51

Financial Institutions: Revenue Diversification




58% 55% 50%63%

56% 60% 58% 55% 58% 58% 52%

42% 45% 50%37%

44% 40% 42% 45% 42% 42% 48%

0%

20%

40%

60%

80%

100%

1Q18 2Q18 3Q18 4Q18 FY18 1Q19 2Q19 3Q19 4Q19 FY19 1Q20


Non - U.S. U.S.

44% 47% 47%

28%42% 41%

49% 46% 42% 45% 48%

56% 53% 53%

72%58% 59%

51% 54% 58% 55% 52%

0%

20%

40%

60%

80%

100%

1Q18 2Q18 3Q18 4Q18 FY18 1Q19 2Q19 3Q19 4Q19 FY19 1Q20



67% 64% 61%72%

66% 69% 68% 66% 66% 67% 69%

25% 27% 32%17% 26%

25% 22% 26% 27% 25% 24%

5% 6% 5% 7% 5% 3% 8% 5% 4% 5% 5%

3% 3% 3% 4% 3% 3% 2% 2% 3% 3% 2%

0%

20%

40%

60%

80%

100%

1Q18 2Q18 3Q18 4Q18 FY18 1Q19 2Q19 3Q19 4Q19 FY19 1Q20


May 6, 2020 52

$156 $181 $174 $177 $202 $225 $218$185

$222

$121

$142 $167 $181$174

$188 $213

$206

$224

$0

$50

$100

$150

$200

$250

$300

$350

$400

$450

$500

2011 2012 2013 2014 2015 2016 2017 2018 2019

$ M

illio

ns


Public Finance and SovereignProject & Infrastructure FinanceOther

$248 $313 $302 $307

$364 $408 $384 $292

$374

$207 $266

$220

$243

$0

$100

$200

$300

$400

$500

$600

$700

$800

$900

2011 2012 2013 2014 2015 2016 2017 2018 2019

$ B

illio

ns


Rated Global Project & Infrastructure Finance Bonds

Long-Term Rated U.S. Muni Bonds

Public, Project and Infrastructure: Revenue and Issuance

$59$82 $78 $74 $71 $79

$95

$129

$76

$57

$67 $57

$39 $51 $64

$75

$52

$64

$0

$50

$100

$150

$200

1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20

$ B

illio

ns


Rated Global Project & Infrastructure Finance Bonds

Long-Term Rated U.S. Muni Bonds

$47 $52 $45 $42 $46 $53 $58 $65 $57

$46$56

$54$49 $47

$56$62

$60

$52

$0

$20

$40

$60

$80

$100

$120

$140

1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20

$ M

illio

ns


Public Finance and Sovereign

Project & Infrastructure Finance

Other


2. Global Rated Project & Infrastructure Finance available starting in 2016 and represents Moody’s rated issuance.

Sources: Thomson SDC, Moody’s Corporation. Note: Debt issuance categories do not directly correspond to Moody’s revenue categorization.

May 6, 2020 53

58% 64% 61% 58% 61% 59%66% 69% 67% 65% 63%

42% 36% 39% 42% 39% 41%34% 31% 33% 35% 37%

0%

20%

40%

60%

80%

100%

1Q18 2Q18 3Q18 4Q18 FY18 1Q19 2Q19 3Q19 4Q19 FY19 1Q20



43% 43% 40% 40% 41% 35% 36% 39% 36% 37% 38%

57% 57% 60% 60% 59% 65% 64% 61% 64% 63% 62%

0%

20%

40%

60%

80%

100%

1Q18 2Q18 3Q18 4Q18 FY18 1Q19 2Q19 3Q19 4Q19 FY19 1Q20


Non - U.S. U.S.

50% 48% 46% 45% 47% 49% 49% 48% 52% 50% 52%

50% 52% 54% 55% 53% 51% 51% 52% 48% 50% 48%

0%

20%

40%

60%

80%

100%

1Q18 2Q18 3Q18 4Q18 FY18 1Q19 2Q19 3Q19 4Q19 FY19 1Q20

Public Finance and Sovereign Project & Infrastructure Finance Other


Public, Project and Infrastructure: Revenue Diversification



May 6, 2020 54

Moody’s Analytics: Financial Overview

$267 $276 $280 $297 $308 $315 $318 $333 $358

$102 $110 $115$124 $122 $118 $133

$149 $138$38 $37 $40

$44 $42 $42 $43$31

$0

$100

$200

$300

$400

$500

$600

1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20

$ M

illio

ns


$445 $483 $520 $572 $626 $668$833

$1,121$1,273

$196 $243 $263$329 $374 $419

$449

$451$522

$62 $108 $119$168

$150$147

$149

$159

$159

$0

$400

$800

$1,200

$1,600

$2,000

$2,400

2011 2012 2013 2014 2015 2016 2017 2018 2019

$ M

illio

ns


Professional Services


Research, Data and

Analytics

Revenue1: Distribution by Line of Business


Note: Percentages have been rounded and may not total to 100%.

1. Historical data has been adjusted to conform with current information and excludes intercompany revenue. Research, Data and Analytics includes Bureau van Dijk revenue

beginning from the acquisition close date, August 10, 2017. The revenue reclassification of the FACT product from RD&A to ERS is reflected starting from 1Q 2018. Subsequent

to the divestiture of MAKS in 2019, revenue from the Moody's Analytics Learning Solutions ("MALS") unit, which previous to 2020 was reported in the Professional Services line of

business ("LOB"), will now be reported as part of the RD&A LOB.

66% 65% 64% 64% 65% 65% 66% 64% 65% 65% 72%

25% 26% 26% 27% 26% 26% 25% 27% 29% 27%28%

9% 9% 9% 9% 9% 9% 9% 9% 6% 8%

0%

20%

40%

60%

80%

100%

1Q18 2Q18 3Q18 4Q18 FY18 1Q19 2Q19 3Q19 4Q19 FY19 1Q20

60% 59% 60% 58% 59% 57% 58% 58% 58% 58% 57%

40% 41% 40% 42% 41% 43% 42% 42% 42% 42% 43%

0%

20%

40%

60%

80%

100%

1Q18 2Q18 3Q18 4Q18 FY18 1Q19 2Q19 3Q19 4Q19 FY19 1Q20


Non-U.S. U.S.

15% 16% 16% 17% 16% 15% 15% 16% 14% 15% 10%

85% 84% 84% 83% 84% 85% 85% 84% 86% 85% 90%

0%

20%

40%

60%

80%

100%

1Q18 2Q18 3Q18 4Q18 FY18 1Q19 2Q19 3Q19 4Q19 FY19 1Q20


May 6, 2020 55

RDC Acquisition Provides Leadership

Position in the KYC Market

1. Source: Burton-Taylor, “AML/KYC Data & Services Global Sizing 2019”, November 2019; Moody’s Analytics estimates.

» RDC’s data and decision tools combined with BvD’s

compliance products position MA to become a leading

KYC solutions provider

» 2019 pro forma combined compliance product sales

of ~$150M

» The KYC space is a $900M market with ~18% 5-yr

CAGR1

RDC’sProprietary

Global Regulatory Information Database (“GRID”)

Adverse Media

» ~120K sources across public data from

240 countries

» ~3.0 billion articles scanned in the last

decade

Special Collections

» Sanctions Connect provides information on

individuals and organizations associated

with sanctioned entities

» Specialized datasets include: Iran Connect,

Panama Papers and Marijuana-Related

Business

Politically-Exposed Persons

» ~1.5 million PEPs featured from a full

spectrum of government, media and

academic sources

» Regional desks covering 70+ languages and

local dialects

Sanctions & Watchlists

» 800+ regulatory and disciplinary authority /

government lists

» Features local, state and federal sources

from across the world covering fugitives,

exclusions, fraud warnings, debarments,

sex offenses and law enforcement actions

11M+ Profiles | ~10,000 profiles updated daily | ~300M daily screens

May 6, 2020 56

Historically, Moody’s Revenue and Interest Rates

Have Not Been Strongly Correlated

+200bps

+120bps

+100bps

+180bps

MCO Revenue and Interest Rates

Note: Gray bars reflect periods of significant increases in the 10-year Treasury Yield.

1. 10-yr U.S. Treasury Yields are represented by the rate at the end-of-period.


Source: www.treasury.gov.

5.8%

7.8%

4.7%

6.5%

2.3%

3.3%

1.8%

3.0%

1.9%

0%

1%

2%

3%

4%

5%

6%

7%

8%

9%

$0

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

1992

1993

1994

1995

1996

19

97

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

20

08

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

20

19

2020F

$ M

illio

ns

MIS Revenue (L) MIS Revenue Guidance

MA Revenue (L) MA Revenue Guidance

MCO Revenue (L) 10-yr U.S. Treasury Yield (R)1

2

http://www.treasury.gov/

May 6, 2020 57

» Strong liquidity with $2.2B in cash and short-term

investments, and a $1.0B revolving credit facility2

» 1.9x net debt to adjusted operating income3

» Leverage well below maximum 4.5x net

debt/EBITDA covenant4

Proactive Capital and Liquidity Management

1. WAC = Weighted Average Coupon. As of year-end. 2020 data as of March 31, 2020.

2. As of March 31, 2020

3. Trailing twelve months adjusted operating income. Amounts are adjusted measures, see Appendix for reconciliations from adjusted financial measures to U.S. GAAP and gross

debt to net debt.

4. Total Debt (gross debt less $100M of cash and equivalents) to EBITDA ratio threshold is normally 4.0x, but elevated to 4.5x for three quarters after an acquisition >$500 million.

5. Certain USD denominated debt has been synthetically converted to EUR via cross-currency swaps. EUR converted to USD as of 3/31/2020.

700

400

600

400487

300170

250

500 549

823

500

330250

500

0

100

200

300

400

500

600

700

800

900

2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2044 2048

USD Fixed Commercial Paper EUR Fixed EUR Floating

» Issued $700M of 5-year notes in March,

demonstrating strong investor confidence in Moody’s

» Fixed-to-floating-rate swaps portfolio benefits from low

rate environment

‒ Approximately 31% of debt portfolio exposed to

floating rate

» Anchored around BBB+ rating

4.2% 3.9% 4.0%

3.4% 3.4%

2.1%2.2%

4.7%

4.3% 4.3%

3.5%

3.9%

3.3% 3.4%

1.5%

2.0%

2.5%

3.0%

3.5%

4.0%

4.5%

5.0%

2014 2015 2016 2017 2018 2019 2020

WAC With Hedges WAC Excluding Hedges

Bond portfolio WAC1 Balanced maturity schedule5

$ in millions

May 6, 2020 58

» ML and deep learning tools

to automate financial data

spreading at both MA and

MIS

» AI and NLP used to generate

credit reports on 6,000

municipal issuers

» RPA of manual, repeatable

tasks within MIS

» Incorporating alternative

data sources to augment

SME credit scoring accuracy

» QuantCube pilot program to

synthesize unstructured

data to enhance financial

analysis

» CompStak’s use of crowd-

sourced data on CRE leases

and sales

» NLP based early warning and

monitoring tools for MIS

analysts and MA customers

» AI tailored credit training for

MA customers – Credit Coach

» Faster loan approvals with AI

powered lending decisions –

CreditLens

» SaaS accelerating product

development and improving

customer experience

» Leveraging PaaS to

experiment with application of

tools and techniques --

blockchain and big data

» Moody’s IT moving to IaaS to

expand capabilities and lower

costs

Enhance

Data & Analytics

Deliver

Efficiencies

Improve

Decisions

Increase

Adaptability

Note: AI: Artificial Intelligence; ML: Machine learning; NLP: Natural language processing; RPA: Robotic process automation; IaaS: Infrastructure-as-a-service; SaaS: Software-as-a-

service; PaaS: Platform-as-a-service.

Technology: Innovating with PurposeNext Gen Tech is a Defining Element of our Culture, Setting Stage for Growth

May 6, 2020 59

1,205 1,422

$500.0

$700.0

$900.0

$1,100.0

$1,300.0

1Q19 1Q20

$ B

illi

on

s

Issuance1

MIS 1Q20 Results

$129

$386

($12) $503

55.0%60.5%

35.0%35.1%35.1%35.2%35.2%35.3%35.3%35.4%35.4%35.5%35.5%35.6%35.6%35.7%35.8%35.8%35.9%35.9%36.0%36.0%36.1%36.1%36.2%36.2%36.3%36.4%36.4%36.5%36.5%36.6%36.6%36.7%36.7%36.8%36.8%36.9%36.9%37.0%37.1%37.1%37.2%37.2%37.3%37.3%37.4%37.4%37.5%37.5%37.6%37.6%37.7%37.8%37.8%37.9%37.9%38.0%38.0%38.1%38.1%38.2%38.2%38.3%38.3%38.4%38.5%38.5%38.6%38.6%38.7%38.7%38.8%38.8%38.9%38.9%39.0%39.1%39.1%39.2%39.2%39.3%39.3%39.4%39.4%39.5%39.5%39.6%39.6%39.7%39.8%39.8%39.9%39.9%40.0%40.0%40.1%40.1%40.2%40.2%40.3%40.3%40.4%40.5%40.5%40.6%40.6%40.7%40.7%40.8%40.8%40.9%40.9%41.0%41.0%41.1%41.2%41.2%41.3%41.3%41.4%41.4%41.5%41.5%41.6%41.6%41.7%41.8%41.8%41.9%41.9%42.0%42.0%42.1%42.1%42.2%42.2%42.3%42.3%42.4%42.5%42.5%42.6%42.6%42.7%42.7%42.8%42.8%42.9%42.9%43.0%43.0%43.1%43.2%43.2%43.3%43.3%43.4%43.4%43.5%43.5%43.6%43.6%43.7%43.7%43.8%43.9%43.9%44.0%44.0%44.1%44.1%44.2%44.2%44.3%44.3%44.4%44.5%44.5%44.6%44.6%44.7%44.7%44.8%44.8%44.9%44.9%45.0%45.0%45.1%45.2%45.2%45.3%45.3%45.4%45.4%45.5%45.5%45.6%45.6%45.7%45.7%45.8%45.9%45.9%46.0%46.0%46.1%46.1%46.2%46.2%46.3%46.3%46.4%46.4%46.5%46.6%46.6%46.7%46.7%46.8%46.8%46.9%46.9%47.0%47.0%47.1%47.2%47.2%47.3%47.3%47.4%47.4%47.5%47.5%47.6%47.6%47.7%47.7%47.8%47.9%47.9%48.0%48.0%48.1%48.1%48.2%48.2%48.3%48.3%48.4%48.4%48.5%48.6%48.6%48.7%48.7%48.8%48.8%48.9%48.9%49.0%49.0%49.1%49.1%49.2%49.3%49.3%49.4%49.4%49.5%49.5%49.6%49.6%49.7%49.7%49.8%49.9%49.9%50.0%50.0%50.1%50.1%50.2%50.2%50.3%50.3%50.4%50.4%50.5%50.6%50.6%50.7%50.7%50.8%50.8%50.9%50.9%51.0%51.0%51.1%51.1%51.2%51.3%51.3%51.4%51.4%51.5%51.5%51.6%51.6%51.7%51.7%51.8%51.8%51.9%52.0%52.0%52.1%52.1%52.2%52.2%52.3%52.3%52.4%52.4%52.5%52.6%52.6%52.7%52.7%52.8%52.8%52.9%52.9%53.0%53.0%53.1%53.1%53.2%53.3%53.3%53.4%53.4%53.5%53.5%53.6%53.6%53.7%53.7%53.8%53.8%53.9%54.0%54.0%54.1%54.1%54.2%54.2%54.3%54.3%54.4%54.4%54.5%54.5%54.6%54.7%54.7%54.8%54.8%54.9%54.9%55.0%55.0%55.1%55.1%55.2%55.3%55.3%55.4%55.4%55.5%55.5%55.6%55.6%55.7%55.7%55.8%55.8%55.9%56.0%56.0%56.1%56.1%56.2%56.2%56.3%56.3%56.4%56.4%56.5%56.5%56.6%56.7%56.7%56.8%56.8%56.9%56.9%57.0%57.0%57.1%57.1%57.2%57.2%57.3%57.4%57.4%57.5%57.5%57.6%57.6%57.7%57.7%57.8%57.8%57.9%58.0%58.0%58.1%58.1%58.2%58.2%58.3%58.3%58.4%58.4%58.5%58.5%58.6%58.7%58.7%58.8%58.8%58.9%58.9%59.0%59.0%59.1%59.1%59.2%59.2%59.3%59.4%59.4%59.5%59.5%59.6%59.6%59.7%59.7%59.8%59.8%59.9%59.9%60.0%60.1%60.1%60.2%60.2%60.3%60.3%60.4%60.4%60.5%60.5%60.6%60.7%60.7%60.8%60.8%60.9%60.9%61.0%61.0%61.1%61.1%61.2%61.2%61.3%61.4%61.4%61.5%61.5%61.6%61.6%61.7%61.7%61.8%61.8%61.9%61.9%62.0%

$0$50

$100$150$200$250$300$350$400$450$500$550$600$650

1Q19 MISAdjustedOperating

Income

MIS RevenueIncrease

MIS ExpenseIncrease

1Q20 MISAdjustedOperating

Income

$ M

illio

ns

MIS Adjusted Operating Income and Margin

+550bps

2 2

$355$453

$101

$96$116

$125$93

$109

$5

$11

$0

$100

$200

$300

$400

$500

$600

$700

$800

1Q19 1Q20

$ M

illio

ns

MIS Revenue

CFG SFG FIG PPIF MIS Other

$670

$794

28%

(5%)

8%

17%

YoY

Change

1. Excludes sovereign debt issuance.

2. Includes intercompany revenue and expenses.

May 6, 2020 60

$146

($43)

$133

$24 ($11)

28.1%29.3%

15.0%$0

$100

$200

1Q19 MAAdjustedOperating

Income

MA RevenueIncrease

MA ExpenseIncrease

1Q20 MAAdjustedOperating

Income$ M

illio

ns

MA Adjusted Operating Income and Margin

+120bps

2 2

$308$358

$122

$138$42

$0

$100

$200

$300

$400

$500

1Q19 1Q20

$ M

illio

ns

MA Revenue1

RD&A ERS PS

16%

13%

$472

$496

YoY

Change

MA 1Q20 Results

1. Subsequent to the divestiture of MAKS in 2019, revenue from the Moody's Analytics Learning Solutions ("MALS") unit, which previous to 2020 was reported in the Professional

Services line of business ("LOB"), will now be reported as part of the RD&A LOB. Prior periods have not been reclassified as the amounts were not material.

2. Includes intercompany revenue and expenses.

May 6, 2020 61

Low-single-digit% increase

1,750 1,770 1,790 1,810 1,830 1,850 1,870 1,890 1,910 1,930 1,950 1,970 1,990 2,010 2,030 2,050 2,070 2,090 2,110 2,130 2,150 2,170 2,190 2,210 2,230 2,250 2,270 2,290 2,310 2,330 2,350 2,370 2,390 2,410 2,430 2,450 2,470 2,490 2,510 2,530 2,550 2,570 2,590 2,610 2,630 2,650 2,670 2,690 2,710 2,730 2,750 2,770 2,790 2,810 2,830 2,850 2,870 2,890 2,910 2,930

3/11 FY 2020F TotalOperating Expenses

VariableCompensation

Savings Associatedwith Social Distancing

Investment and ProjectReprioritization

FX 4/30 FY 2020F TotalOperating Expenses

$ M

illio

ns

(3.0% - 4.0%)

Note: Guidance as of April 30, 2020. Refer to Table 12 – “2020 Outlook” in the press release for a complete list of guidance and a reconciliation between adjusted measures to GAAP.

Percentages and totals may not foot due to rounding.

1. Operating growth of expenses moderated by lower expenses resulting from 2018/2019 restructuring program and ongoing expense efficiency initiatives.

2. Incremental operating expenses of acquired companies, net of divestitures, including transaction expenses. Also includes non-tax-deductible loss related to the divestiture of MAKS

and transaction expenses.

3. Includes travel, entertainment, marketing, recruiting and training expenses.

Mid-single-digit % decline

~(2.5%)

$2,831

2,000 2,050 2,100 2,150 2,200 2,250 2,300 2,350 2,400 2,450 2,500 2,550 2,600 2,650 2,700 2,750 2,800 2,850 2,900 2,950 3,000 3,050 3,100

FY 2019 TotalOperating Expenses

Operating Growth,Net of Efficiencies

Acquired andDivested

Companies

Additional ExpenseManagement

RestructuringCharge andSeverance

FX FY 2020F TotalOperating Expenses

$ M

illio

ns

+2.0% - 2.5%

2

Prudently Reducing ExpensesFY20F vs. FY19A

FY20F New (4/30) vs. Prior (3/11)

+~0.5%

~(5.0% - 6.0%)

~(1.0%)

(1.0% - 1.5%) ~(1.5%)~(0.5%)

Mid-single-digit

% decline

3

1

May 6, 2020 62

Moody’s Global Presence

U.S. employees non-U.S. employees total employees2

U.S. employees non-U.S. employees total employees1

4,065 7,298 11,363

20

20

3,908 7,173 11,081

20

19

1. As of March 31, 2020. Reflects acquisition of RDC.

2. As of December 31, 2019.

AmericasArgentina Mexico

Brazil Panama

Canada Peru

Chile United States

Costa Rica

Europe, Middle East & AfricaAustria Poland

Belgium Portugal

Cyprus Russia

Czech Republic Saudi Arabia

Denmark Slovak Republic

France South Africa

Germany Spain

Israel Sri Lanka

Italy Sweden

Lithuania Switzerland

Morocco United Arab Emirates

Netherlands United Kingdom

Asia-PacificAustralia Nepal

China Singapore

Hong Kong South Korea

India Thailand

Japan

May 6, 2020 63

Reconciliation of Adjusted Financial Measures to

GAAPAdjusted Operating Income and Adjusted Operating Margin Reconciliation1

Year Ended March 31, 2020

(in $ millions) 2015 2016 2017 2018 2019 TTM 1Q20

Operating Income $1,490.7 $650.9 $1,820.8 $1,868 $1,998 $2,128

Operating Margin 42.8% 18.1% 43.3% 42.0% 41.4% 42.8%

Add Adjustment:

Depreciation & Amortization 113.5 126.7 158.3 192 200 199

Acquisition-Related Expenses - - 22.5 8 3 2

Restructuring - 12.0 - 49 60 53

Captive insurance company

settlement - - - - 16 16

Settlement Charge - 863.8 - - - -

Loss pursuant to the divestiture of

MAKS - - - - 14 23

Adjusted Operating Income $1,604.2 $1,653.4 $2,001.6 $2,117 $2,291 $2,421

Adjusted Operating Margin 46.0% 45.9% 47.6% 47.6% 47.4% 48.6%

Moody's Corporation Net Debt Reconciliation

1. 2014 - 2017 operating and adjusted operating income have been restated to conform to the new presentation of pension accounting.

March 31, 2020

(in $ millions) 2015 2016 2017 2018 2019 1Q20

Gross debt $3,380.6 $3,363.0 $5,540.5 $5,676 $5,581 $6,778

Less: Cash, cash equivalents and

short-term investments2,232.2 2,224.9 1,183.3 1,818 1,930 2,231

Net debt $1,148.4 $1,138.1 $4,357.2 $3,858 $3,651 $4,557

May 6, 2020 64


GAAP (cont.)

Moody's Corporation Operating Margin Guidance Reconciliation

2020F1

Projected Operating Margin - GAAP 41% - 43%

Depreciation & Amortization Approximately 4.8%

Loss pursuant to the divestiture of MAKS 0.2%

Projected Adjusted Operating Margin 46% - 48%

Free Cash Flow Reconciliation

(in $ millions) 2015 2016 2017 2018 2019 2020F1

Net cash flows from

operating activities$1,198.1 $1,259.2 $754.6 $1,461 $1,675 $1,300 - $1,500

Less: Capital expenditures 89.0 115.2 90.6 91 69 ~100

Free Cash Flow $1,109.1 $1,144.0 $664.0 $1,370 $1,606 $1,200 - $1,400


May 6, 2020 65


GAAP (cont.)Moody's Corporation Diluted EPS Reconciliation

2015 2016 2017 2018 2019 2020F1

Diluted EPS - GAAP $4.63 $1.36 $5.15 $6.74 $7.42 $7.25 - $7.85

Legacy Tax (0.03) - - - - -

Impact of Litigation Settlement - $3.59 - - - -

Captive insurance company settlement $0.06 -

ICRA Gain - - - - - -

FX gain on liquidation of a subsidiary - ($0.18) - - - -

Restructuring - $0.04 - $0.19 $0.23 -

CCXI Gain - - ($0.31) - - -

Acquisition-Related Expenses - - $0.10 $0.03 $0.02 -

Purchase Price Hedge Gain - - ($0.37) - - -

Acquisition-Related Intangible

Amortization Expenses$0.11 $0.13 $0.23 $0.40 $0.42 ~ $0.50

Loss pursuant to the divestiture of

MAKS- - - - $0.07 $0.05

Impact of U.S. tax reform - - $1.28 ($0.30) - -

Net Impact of U.S./European tax change

on deferred taxes- - ($0.01) - - -

Increase to non-U.S. UTPs - - - $0.33 - -

Tax charge pursuant to the divestiture of

MAKS- - - - $0.07 -

Adjusted Diluted EPS $4.71 $4.94 $6.07 $7.39 $8.29 $7.80 – $8.40


Note: Table may not sum to total due to rounding.

Investor Relations

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moodys.com

http://ir.moodys.com/

mailto:[email protected]

May 6, 2020 67

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