Moody's profit rises

Bond ratings company Moody's Corp posted a 37 percent rise in first-quarter profit, topping Wall Street expectations, as corporate debt issuance surged. The company also raised its quarterly dividend and increased its full-year earnings forecast, and the news sent Moody's shares 9.4 percent higher to $39.29 in early trading on the New York Stock Exchange.
Low global interest rates are prompting companies to refinance their debt are also pushing investors to take more risk on higher-yielding corporate bonds. McGraw-Hill Cos Inc, which houses ratings agency Standard & Poor's, beat Street earnings estimates on Tuesday, also because of strong bond issuance. S&P estimated there would be $1.2 trillion to $1.5 trillion of US and European bond and loan maturities to refinance annually from 2011 to 2014. Moody's Investors Service, the ratings agency business at Moody's Corp, saw its revenue climb 23 percent to $412.6 million in the first quarter.