Moody's Analytics
| Company type | Division |
|---|---|
| Industry | Financial services, Economic analysis, Risk management, Software |
| Predecessor | Moody's Analytics |
| Founded | 2007 |
| Products | Economic analysis, Risk performance and financial modeling, Consulting, Educational programs, Software solutions including Market Implied Ratings (MIR), Expected Default Frequency (EDF), RiskAnalyst |
| Parent | Moody's Corporation |
Moody's, previously known as Moody's Analytics, operates as a division of Moody's Corporation established in 2007 to separate non-rating functions from Moody's Investors Service. The company specializes in delivering economic analysis related to risk, performance, and financial modeling, complemented by consulting, educational programs, and software solutions. Its principal units comprise Moody's KMV, Economy.com, Wall Street Analytics, the Institute of Risk Standards and Qualifications, and CSI Global Education Inc..
History
In 1995, Moody's initiated a quantitative analytics division following the acquisition of Financial Proformas, Inc., which was branded Moody's Risk Management Service (MRMS). In 2000, the firm expanded its portfolio by acquiring Crowe Horwath’s Software Products Group, adding commercial loan risk assessment software. Additionally, MRMS collaborated with RiskMetrics to merge credit risk evaluation with portfolio management techniques.
The 2002 acquisition of KMV, a San Francisco-based quantitative risk firm, led to its integration with MRMS under the name Moody's KMV. This deal included the EDF (Expected Default Frequency) model for assessing credit default probabilities. Moody’s KMV introduced Credit Monitor in 2003, a system designed for credit risk oversight.
Moody's broadened its capabilities in 2005 by acquiring Economy.com, thereby strengthening its economic and demographic research offerings. The following year, it purchased Wall Street Analytics, gaining access to financial risk management software such as CDOnet for CDO valuation.
In August 2007, Moody's Corporation established Moody's Analytics to unify its non-rating operations including Moody's KMV, Economy.com, and Wall Street Analytics. Subsequent acquisitions featured Fermat International (2008), a banking risk software provider based in Brussels; Enb Consulting Ltd. (2008), which specializes in financial sector training; and CSI Global Education Inc. (2010), recognized for certification programs like the Canadian Securities Course.
Strategic collaborations include a 2010 partnership with Experian aimed at creating consumer loan portfolio management tools like CreditCycle Plus. In 2011, Moody’s launched Mortgage Portfolio Analyzer software tailored for credit risk management.
Further acquisitions expanded Moody’s Analytics’ services: Copal Partners (2011) for outsourced research capabilities; Barrie & Hibbert Limited (2011), experts in insurance risk modeling; Amba Investment Services (2013), focused on investment research; Lewtan (2014), serving the asset-securitization market; and Bureau van Dijk (2017), enhancing corporate data resources.
In 2016, Copal Amba was consolidated into Moody's Analytics Knowledge Services division. Mark Almeida held the presidency from January 2008 through October 2019. In 2017, Moody’s Analytics formed a partnership with SBI to provide employee training programs.
In November 2017, Moody’s Analytics was among several companies targeted by cyberattacks orchestrated by three Chinese hackers in a significant security breach.
More recent acquisitions include Cortera (2021), known for credit data and analytical insights, and kompany (2021), which broadened KYC and compliance service offerings.
On March 6, 2024, Moody’s Analytics underwent rebranding to simply "Moody's," signifying the integration of its business units and reflecting its global presence.
Products and services
Moody's delivers Market Implied Ratings (MIR) alongside Expected Default Frequency (EDF) software, which interprets market price indicators through its proprietary ratings framework and calculates the likelihood of credit default by analyzing variables such as market capitalization, equity fluctuations, volatility, and capital configuration. Additionally, Moody's equips financial institutions with advanced risk management solutions, featuring RiskAnalyst software designed for the assessment and quantification of commercial loan credit risk. These offerings reinforce Moody's leadership in credit risk analytics and strengthen its standing within the financial services sector.