Moody's Corporation (NYSE: MCO) announced today that it has
acquired Wall Street Analytics, Inc., a leading developer of
sophisticated structured finance analysis and monitoring software. The
firm will now be known as Moody's Wall Street Analytics. Terms of the
transaction will not be disclosed and the financial impact to Moody's
is not expected to be material.
The acquisition will broaden Moody's capabilities in the analysis
and monitoring of complex structured debt securities while increasing
the firm's analytical and product development staff dedicated to
creating new software and analytic tools for the structured finance
market. In particular, the addition of Wall Street Analytics enhances
Moody's current collateralized debt obligations (CDO) product suite
and immediately adds mortgage-backed securities (MBS) and asset-backed
securities (ABS) analytic software capabilities. The acquisition will
also enable Wall Street Analytics to tap Moody's deep structured
finance expertise, extensive CDO and MBS databases and global product
marketing capabilities to enhance its offerings to existing customers
and further expand its reach in the structured finance marketplace in
the U.S. and internationally.
"The structured finance markets are growing rapidly worldwide,
bringing a heightened demand for supporting research, data and
analysis," said Raymond W. McDaniel, Jr., Chairman and Chief Executive
Officer of Moody's Corporation. "Wall Street Analytics is an excellent
addition that will help us meet the growing market demand for tools to
analyze structured securities and accelerate our growth in this
segment. This investment is also consistent with our strategy to
invest in growth sectors that are highly complementary to our core
businesses."
"Moody's is a global authority in analyzing and understanding
credit risk in the structured finance market," said Jacob Grotta,
Chief Operating Officer, Wall Street Analytics, Inc. "Combining
Moody's structured finance expertise with our established analytic
tools and software will benefit our current customers and help us
expand our reach in this marketplace."
About Moody's Corporation
Moody's Corporation (NYSE: MCO) is the parent company of Moody's
Investors Service, a leading provider of credit ratings, research and
analysis covering debt instruments and securities in the global
capital markets, Moody's KMV, a leading provider of credit risk
processing and credit risk management products for banks and investors
in credit-sensitive assets serving the world's largest financial
institutions, and Moody's Economy.com, a provider of economic research
and data services. The corporation, which reported revenue of $1.7
billion in 2005, employs approximately 3,000 people worldwide and
maintains offices in 22 countries. Further information is available at
www.moodys.com.
About Wall Street Analytics, Inc.
Wall Street Analytics is a leader in providing sophisticated
software products and services to the structured finance markets. The
company provides products and support to more than 100 clients around
the world including leading asset management firms, investment banks,
trustees, and institutional investors. Its CDOnet, CDOcalc, Structured
Finance Workstation, Bond Administration Workstation, and ABScalc
products are widely recognized for their unique abilities to support
detailed analysis of the most sophisticated structured debt products
including, collateralized debt obligations (CDOs), mortgage-backed
securities (MBS) and asset-backed securities (ABS). Founded in 1987,
the company serves the markets from its three main locations in New
York, San Francisco and London. For more information please visit the
company's website at www.wsainc.com.
"Safe Harbor" Statement under the Private Securities Litigation
Reform Act of 1995
Certain statements contained in this release are forward-looking
statements and are based on future expectations, plans and prospects
for Moody's business and operations that involve a number of risks and
uncertainties. The forward-looking statements and other information
are made as of December 18, 2006, and the Company disclaims any duty
to supplement, update or revise such statements on a going-forward
basis, whether as a result of subsequent developments, changed
expectations or otherwise. In connection with the "safe harbor"
provisions of the Private Securities Litigation Reform Act of 1995,
the Company is identifying certain factors that could cause actual
results to differ, perhaps materially, from those indicated by these
forward-looking statements. Those factors include, but are not limited
to, changes in the volume of debt securities issued in domestic and/or
global capital markets; changes in interest rates and other volatility
in the financial markets; possible loss of market share through
competition; introduction of competing products or technologies by
other companies; pricing pressures from competitors and/or customers;
the potential emergence of government-sponsored credit rating
agencies; proposed U.S., foreign, state and local legislation and
regulations, including those relating to Nationally Recognized
Statistical Rating Organizations; possible judicial decisions in
various jurisdictions regarding the status of and potential
liabilities of rating agencies; the possible loss of key employees to
investment or commercial banks or elsewhere and related compensation
cost pressures; the outcome of any review by controlling tax
authorities of the Company's global tax planning initiatives; the
outcome of other legal actions to which the Company, from time to
time, may be named as a party; a decline in the demand for credit risk
management tools by financial institutions; and other risk factors as
discussed in the Company's Annual Report on Form 10-K for the year
ended December 31, 2005 and in other filings made by the Company from
time to time with the Securities and Exchange Commission.
