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Moody's Corporation: Debt Issuance Is Fueling Growth
Treading Softly · 2026-06-12 · via All Articles on Seeking Alpha

Summary

  • Moody's Corporation is well positioned to benefit from surging corporate debt issuance, with its MIS segment acting as a tollbooth for global credit ratings.
  • MCO's Q1 revenue grew 8.1% year-over-year, driven by record investment-grade issuances and robust demand for AI-related financing from hyperscalers.
  • The company maintains strong financial health (A- S&P rating), a 16-year dividend growth streak, and trades at a 7% discount to a $490 fair value estimate.
  • Key risks include rising inflation, potential interest rate hikes, and systemic credit events in private markets that could dampen debt issuance volumes.
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USD dollar banknote is torn with recession wording on red background for United of America risk of great economic depression crisis concept

Douglas Rissing/iStock via Getty Images

Co-authored by Kody's Dividends

Corporate debt issuance in the United States continues to perform strongly. During the COVID era, when interest rates were near rock bottom, almost every company that had the ability to refinance its debt

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Kody's Dividends, Justin Law, and Rachel Kaufman are part of the Dividend Kings team

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