Moody´s Corporation (NYSE: MCO):
-- FY07 revenue up 11%; 4Q07 revenue down 14%
-- Reported FY07 EPS of $2.58 equaled reported FY06 EPS
-- Non-GAAP FY07 EPS increased 11% to $2.50 per share
-- Expected FY08 EPS between $2.17 to $2.25 per share
Moody´s Corporation (NYSE: MCO) today announced results for the
fourth quarter and full year 2007.
Summary of Results for Fourth Quarter 2007
Moody´s reported revenue of $504.9 million for the three months
ended December 31, 2007, a decrease of 14% from $590.0 million for the
same quarter of 2006. Operating income was $212.1 million and diluted
earnings per share were $0.49, which included a restructuring charge
of $47.8 million or $0.11 per share. Excluding the restructuring
charge in 2007 and the gain from a building sale in 2006, operating
income of $259.9 million declined 14% from $302.7 million in the
year-ago period. Non-GAAP diluted earnings per share of $0.60 in the
quarter decreased 6% from $0.64 per share in the prior year period.
Summary of Results for Full Year 2007
Revenue for the full year 2007 totaled $2,259.0 million, an
increase of 11% from $2,037.1 million for the same period of 2006.
Operating income for the full year 2007 was $1,131.0 million and
included a restructuring charge of $50.0 million. Diluted earnings per
share of $2.58 for the full year 2007 included a $0.19 per share
benefit from the settlement of a legacy tax matter in the second
quarter of 2007 and an $0.11 per share charge related to restructuring
actions. Excluding the 2007 restructuring charge and the 2006 gain on
building sale, operating income of $1,181.0 for 2007 grew 7% from
$1,098.9 million in 2006. Excluding the adjustments listed above and
the impact of legacy tax matters in both years, full year 2007 diluted
earnings per share were $2.50, 11% higher than $2.25 in 2006.
Raymond McDaniel, Chairman and Chief Executive Officer of Moody´s,
commented, "Moody´s confronted unprecedented challenges in 2007 as
credit problems that began in the U.S. housing sector affected
important parts of our ratings business globally. Despite these
difficult conditions, Moody´s reported solid financial performance for
2007 based on very strong performance in the first half of the year."
In speaking about 2008, Mr. McDaniel added, "The severity and
protracted nature of current credit market dislocations confirms that
the challenges of 2007 will persist well into 2008. Moody´s is
responding to these conditions by providing more extensive research
and credit evaluation tools. We are also working closely with market
participants on information transparency in order to restore
confidence and to support more orderly credit market operations as
quickly as possible."
Fourth Quarter Revenue
Revenue at Moody´s Investors Service for the fourth quarter of
2007 was $460.7 million, 16% lower than the prior year period. Foreign
currency translation positively impacted operating results, mainly due
to the weakness of the U.S. dollar relative to the euro and the
British pound, increasing revenue and operating income growth by
approximately 230 and 160 basis points, respectively.
Ratings revenue totaled $372.6 million in the quarter, a decrease
of 23% from a year ago. Growth in revenue from the global financial
institutions business was more than offset by declines across all
other global ratings businesses.
Global structured finance revenue totaled $164.9 million for the
fourth quarter of 2007, a decrease of 40% from a year earlier. U.S.
structured finance revenue decreased 53%, driven by significant
declines in issuance across most asset categories. International
structured finance revenue decreased 17%, led by declines in the
European credit derivatives and commercial mortgage-backed securities
businesses.
Global corporate finance revenue of $104.5 million in the fourth
quarter of 2007 was down slightly with the same quarter of 2006 as
growth in relationship-based fees mitigated declines in issuance-based
revenue. Revenue in the U.S. rose 2% from the prior year period,
reflecting significant growth in revenue from investment-grade bond
ratings, partially offset by double-digit revenue declines from rating
high yield bonds and leveraged bank loans. Outside the U.S., corporate
finance revenue decreased 7% due primarily to declines in revenue from
rating both investment-grade and speculative-grade securities, mainly
in Europe.
Global financial institutions and sovereigns revenue totaled $73.8
million for the fourth quarter of 2007, increasing 6% from the prior
year period. Revenue in the U.S. grew 5%, driven mainly by favorable
results in the insurance sector. Outside the U.S., revenue rose 6%
reflecting good performance in the banking sectors in both Europe and
Asia.
U.S. public finance revenue was $29.4 million for the fourth
quarter of 2007, declining 6% from the robust fourth quarter of 2006.
Moody´s global research revenue rose to $88.1 million, up 30% from
the same quarter of 2006. This growth reflected good increases in each
of Moody´s research product segments, including credit and economic
analysis subscriptions, analytical software and credit training
services.
Revenue at Moody´s KMV ("MKMV") for the fourth quarter of 2007 was
$44.2 million, 11% higher than in the fourth quarter of 2006. Results
were bolstered by strong growth in revenue from the licensing of
credit processing software and sales of risk product subscriptions.
On a geographic basis, Moody´s U.S. revenue of $277.1 million for
the fourth quarter of 2007 decreased 23% from the fourth quarter of
2006. Non-U.S. revenue of $227.8 million was essentially flat to the
prior year period and reflected approximately 530 basis points of
positive impact from currency translation. International revenue
accounted for 45% of Moody´s total revenue in the quarter compared
with 39% in the year-ago period.
Fourth Quarter Expenses
Operating expenses for the fourth quarter of 2007 were $292.8
million and included a restructuring charge of $47.8 million.
Excluding the restructuring charge in 2007 and the gain on a building
sale in 2006, Moody´s operating expenses were $245.0 million in the
fourth quarter, 15% lower than in the prior year period, and $29.5
million or 11% lower than operating expenses in the third quarter of
2007, primarily related to lower incentive compensation expenses.
Moody´s operating margin for the fourth quarter of 2007 was 51%, equal
to the margin for the same period in 2006, excluding the restructuring
charge in 2007 and gain on sale in 2006.
Fourth Quarter Effective Tax Rate
Moody´s effective tax rate for the fourth quarter of 2007 was
33.8% as compared with 39.9% for the prior year period. The reduced
tax rate for the fourth quarter of 2007 was primarily due to lower
state income taxes, including the 2007 reduction of the New York State
income tax rate and the benefit from a higher proportion of income
earned in lower tax jurisdictions.
Full Year 2007 Results
Revenue at Moody´s Investors Service totaled $2,104.2 million for
the full year 2007, an increase of 11% from the prior year period.
Currency translation had a positive impact on these results,
increasing revenue and operating income growth by approximately 210
basis points and 180 basis points, respectively. Global ratings
revenue was $1,779.9 million for the full year 2007, up 9% from
$1,639.8 million in the same period of 2006. Each of the global
ratings business lines achieved year-over-year revenue growth, led by
double-digit growth in corporate finance and financial institutions.
Research revenue rose to $324.3 million for the full year 2007, up 27%
from the full year 2006. Finally, revenue at MKMV for the full year
2007 totaled $154.8 million, 8% higher than in the prior year period.
Share Repurchases and Capital Structure
During the fourth quarter of 2007, Moody´s repurchased 7.7 million
shares at a total cost of $311.4 million and issued 0.8 million shares
of stock under stock-based compensation plans. For the full year 2007,
Moody´s repurchased 31.3 million shares at a total cost of $1.7
billion and issued 4.3 million shares under stock-based compensation
plans. Outstanding shares as of December 31, 2007 totaled 251.4
million, representing a 10% decrease from 278.6 million shares a year
earlier. Share repurchases during the year were funded using a
combination of free cash flow and borrowings. At year-end, Moody´s had
$1.2 billion of outstanding debt with an additional $400 million
available. Additionally, as of December 31, 2007, Moody´s had $2.0
billion of share repurchase authority remaining under its current
program.
Outlook for Full Year 2008
Beginning January 1, 2008, Moody´s segments were changed to
reflect the business reorganization announced in August 2007. As a
result of the reorganization, the rating agency remains in the Moody´s
Investors Service ("MIS") operating company and several ratings
business lines have been realigned. All of Moody´s other commercial
activities, including Moody´s KMV and sales of MIS research, are now
combined under a new operating company known as Moody´s Analytics.
Moody´s new initiatives in fixed income pricing and valuations will
also be captured within Moody´s Analytics. Please refer to the
reconciliation tables at the end of this press release for further
details.
Moody´s outlook for 2008 is based on assumptions about many
macroeconomic and capital market factors, including interest rates,
corporate profitability and business investment spending, merger and
acquisition activity, consumer spending, residential mortgage
borrowing and refinancing activity, securitization levels and capital
markets issuance. There is an important degree of uncertainty
surrounding these assumptions and, if actual conditions differ from
these assumptions, Moody´s results for the year may differ from our
current outlook.
For Moody´s overall, full-year 2008 revenue is expected to decline
in the low double-digit percent range. This decline assumes foreign
currency translation in 2008 at current exchange rates. We anticipate
a weak first half of 2008 with improvement in market liquidity and
issuance conditions later in the year. Under this scenario, we note
that Moody´s first half 2008 performance is likely to reflect
unusually weak market conditions, as well as challenging year-on-year
comparisons against the first half of 2007 when Moody´s delivered
record performance. Excluding the 2007 restructuring charge, we expect
the full-year 2008 operating margin to decline to the mid- to
high-forties percent range, due primarily to lower ratings revenue.
Full-year expenses are expected to be about flat to full year 2007,
excluding the restructuring charge, as the annualized impact of new
hires added in the first half of 2007 and investments we continue to
make in the growing areas of our business will be offset by savings
from our restructuring actions. Earnings per share for 2008 are
projected in a range from $2.17 to $2.25.
For the global Moody´s Investors Service business, we expect
revenue for the full year 2008 to decline in the mid-to high-teens
percent range. Within the U.S., we project Moody´s Investors Service
revenue to decrease in the mid-twenties percent range for the full
year 2008.
In the U.S. structured finance business, we expect revenue for the
year to decline in the low- to mid-forties percent range, reflecting
double-digit percent declines in most asset classes, led by
residential mortgage-backed securities and credit derivatives ratings.
In the U.S. corporate finance business, we expect revenue to
decrease in the low-teens percent range for the year driven by
declines across all asset classes.
In both the U.S. financial institutions and public, project and
infrastructure finance sectors, we project revenue in 2008 to grow in
the low single-digit percent range.
Outside the U.S. we expect Moody´s Investors Service revenue to
decrease in the low single-digit percent range. Good growth from
rating financial institutions; public, project and infrastructure
finance; and corporate securities is expected to be more than offset
by a decline in structured finance ratings revenue, primarily in
Europe.
For Moody´s Analytics, we expect revenue growth in the mid-teens
percent range. In the U.S., growth is projected to be in the low-teens
percent range while outside the U.S., revenue is expected to increase
in the high-teens percent range. Growth in the subscription businesses
is expected in the mid-teens range, reflecting continued demand for
credit and economic research, structured finance analytics, and the
impact of our newly formed pricing and valuation business. In the
consulting business, we anticipate very strong growth, reflecting a
robust pipeline of professional services engagements and credit
training projects. There is considerable demand for Moody´s expertise
in credit education, risk modeling, and scorecard development as
customers implement more sophisticated risk management processes and
comply with regulatory requirements. In the software business, we
expect revenue to be flat versus 2007, as customers begin to migrate
to new generation software platforms.
Moody´s is an essential component of the global capital markets,
providing credit ratings, research, tools and analysis that contribute
to stable, transparent and integrated financial markets. Moody´s
Corporation (NYSE: MCO) is the parent company of Moody´s Investors
Service, which provides credit ratings and research covering debt
instruments and securities, and Moody´s Analytics, encompassing the
growing array of Moody´s non-ratings businesses including Moody´s KMV,
a provider of quantitative credit analysis tools, Moody´s Economy.com,
which provides economic research and data services, and Moody´s Wall
Street Analytics, a provider of software for structured finance
analytics. The Corporation, which reported revenue of $2.3 billion in
2007, employs approximately 3,600 people worldwide and maintains a
presence in 27 countries. Further information is available at
www.moodys.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. Moody´s outlook for 2008 and other forward-looking
statements in this release are made as of February 7, 2008, 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, matters that could affect the volume of debt
securities issued in domestic and/or global capital markets, including
credit quality concerns, 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; regulations relating to the oversight of
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 those legacy tax and legal contingencies that relate to the
Company, its predecessors and their affiliated companies for which
Moody´s has assumed portions of the financial responsibility; the
outcome of other legal actions to which the Company, from time to
time, may be named as a party; the ability of the Company to
successfully integrate acquired businesses; 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, 2006 and in other filings made by the
Company from time to time with the Securities and Exchange Commission.
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Moody´s Corporation
Consolidated Statements of Operations (Unaudited)
Three Months Twelve Months Ended
Ended
December 31, December 31,
----------------- --------------------
2007 2006 2007 2006
Amounts in millions, except per
share amounts
------------------------------- -------- -------- ---------- ---------
Revenue $504.9 $ 590.0 $2,259.0 $2,037.1
------------------------------- -------- -------- ---------- ---------
Expenses
Operating, selling, general
and administrative expenses 233.1 276.3 1,035.1 898.7
Restructuring charge 47.8 - 50.0 -
Gain on sale of building - (160.6) - (160.6)
Depreciation and amortization 11.9 11.0 42.9 39.5
-------- -------- ---------- ---------
Total expenses 292.8 126.7 1,128.0 777.6
------------------------------- -------- -------- ---------- ---------
Operating income 212.1 463.3 1,131.0 1,259.5
------------------------------- -------- -------- ---------- ---------
Interest and other non-
operating (expense) income,
net (19.8) - (14.3) 1.0
Income before provision for
income taxes 192.3 463.3 1,116.7 1,260.5
Provision for income taxes 65.0 184.7 415.2 506.6
------------------------------- -------- -------- ---------- ---------
Net income $127.3 $ 278.6 $ 701.5 $ 753.9
------------------------------- -------- -------- ---------- ---------
------------------------------- -------- -------- ---------- ---------
Earnings per share
Basic $ 0.50 $ 1.00 $ 2.63 $ 2.65
Diluted $ 0.49 $ 0.97 $ 2.58 $ 2.58
------------------------------- -------- -------- ---------- ---------
Weighted average shares
outstanding
Basic 256.2 279.1 266.4 284.2
Diluted 260.6 286.7 272.2 291.9
------------------------------- -------- -------- ---------- ---------
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Moody´s Corporation
Supplemental Revenue Information (Unaudited)
Three Months Twelve Months
Ended Ended
December 31, December 31,
------------- -----------------
Amounts in millions 2007 2006 2007 2006
-------------------------------------- ------ ------ -------- --------
Moody´s Investors Service (a)
Structured finance $164.9 $275.6 $ 890.6 $ 880.6
Corporate finance 104.5 105.7 465.4 380.1
Financial institutions and sovereign
risk 73.8 69.9 303.1 266.8
Public finance 29.4 31.4 120.8 112.3
------ ------ -------- --------
Total ratings revenue 372.6 482.6 1,779.9 1,639.8
Research 88.1 67.7 324.3 254.5
------ ------ -------- --------
Total Moody´s Investors Service 460.7 550.3 2,104.2 1,894.3
Moody´s KMV 44.2 39.7 154.8 142.8
------ ------ -------- --------
Total revenue $504.9 $590.0 $2,259.0 $2,037.1
-------------------------------------- ------ ------ -------- --------
Revenue by geographic area
United States $277.1 $360.6 $1,361.4 $1,277.8
International 227.8 229.4 897.6 759.3
------ ------ -------- --------
Total revenue $504.9 $590.0 $2,259.0 $2,037.1
-------------------------------------- ------ ------ -------- --------
(a) Certain prior year amounts have been reclassified to conform to
the current year presentation.
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Moody´s Corporation
Selected Consolidated Balance Sheet Data (Unaudited)
December 31, December 31,
2007 2006
------------- ------------
Amounts in millions
Cash and cash equivalents $ 426.3 $ 408.1
Short-term investments 14.7 75.4
Total current assets 939.4 1,001.9
Non-current assets 704.3 495.8
Total assets 1,643.7 1,497.7
Total current liabilities 1,310.4 700.0
Notes payable 600.0 300.0
Other long-term liabilities 516.9 330.3
Shareholders´ (deficit) equity (783.6) 167.4
Total liabilities and shareholders´ equity $ 1,643.7 $1,497.7
Shares outstanding 251.4 278.6
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Moody´s Corporation
Reconciliation to Non-GAAP Financial Measures (Unaudited)
Three Months Ended
December 31, 2007
---------------------------------
Amounts in millions, except per
share amounts
Non-GAAP
As Financial
Reported Adjustments Measures*
-------- ----------- ---------
Revenue $ 504.9 $ - $ 504.9
Expenses 292.8 (47.8)(a) 245.0
-------- ----------- ---------
Operating income 212.1 47.8 259.9
Interest and other non-operating
(expense), net (19.8) - (19.8)
-------- ----------- ---------
Income before provision for income
taxes 192.3 47.8 240.1
Provision for income taxes 65.0 19.2(c) 84.2
-------- ----------- ---------
Net income $ 127.3 $ 28.6 $ 155.9
-------- ----------- ---------
Basic earnings per share $ 0.50 $ 0.61
-------- ---------
Diluted earnings per share $ 0.49 $ 0.60
-------- ---------
------------------------------------ -------- ----------- ---------
Twelve Months Ended
December 31, 2007
---------------------------------
Amounts in millions, except per
share amounts
Non-GAAP
As Financial
Reported Adjustments Measures*
-------- ----------- ---------
Revenue $2,259.0 $ - $2,259.0
Expenses 1,128.0 (50.0)(a) 1,078.0
-------- ----------- ---------
Operating income 1,131.0 50.0 1,181.0
Interest and other non-operating
(expense), net (14.3) (31.9)(b) (46.2)
-------- ----------- ---------
Income before provision for income
taxes 1,116.7 18.1 1,134.8
Provision for income taxes 415.2 40.4(c) 455.6
-------- ----------- ---------
Net income $ 701.5 $(22.3) $ 679.2
-------- ----------- ---------
Basic earnings per share $ 2.63 $ 2.55
-------- ---------
Diluted earnings per share $ 2.58 $ 2.50
-------- ---------
------------------------------------ -------- ----------- ---------
In addition to its reported results, Moody´s has included in the table
above adjusted results that the Securities and Exchange Commission
defines as "non-GAAP financial measures." Management believes that
such non-GAAP financial measures, when read in conjunction with the
company´s reported results, can provide useful supplemental
information for investors analyzing period to period comparisons of
the company´s growth. The table above shows Moody´s results for the
three months and twelve months ended December 31, 2007, adjusted to
reflect the following:
(a) To exclude the restructuring charge.
(b) To exclude an earnings benefit of $31.9 million relating to the
resolution of certain legacy tax matters.
(c) To reflect the income tax impacts related to the adjustments
described in note (a) and to exclude an income tax benefit of $20.4
million for the full year of 2007 related to the resolution of
certain legacy tax matters.
* May not add due to rounding
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Moody´s Corporation
Reconciliation to Non-GAAP Financial Measures (Unaudited)
Three Months Ended
December 31, 2006
----------------------------------
Amounts in millions, except per
share amounts
Non-GAAP
As Financial
Reported Adjustments Measures*
-------- ----------- ----------
Revenue $590.0 $ - $ 590.0
Expenses 126.7 160.6(a) 287.3
-------- ----------- ----------
Operating income 463.3 (160.6) 302.7
Interest and other non-operating
income, net - - -
-------- ----------- ----------
Income before provision for income
taxes 463.3 (160.6) 302.7
Provision for income taxes 184.7 (66.5)(b) 118.2
-------- ----------- ----------
Net income $278.6 $ (94.1) $ 184.5
-------- ----------- ----------
Basic earnings per share $ 1.00 $ 0.66
-------- ----------
Diluted earnings per share $ 0.97 $ 0.64
-------- ----------
----------------------------------- -------- ----------- ----------
Twelve Months Ended
December 31, 2006
---------------------------------
Amounts in millions, except per
share amounts
Non-GAAP
As Financial
Reported Adjustments Measures*
-------- ----------- ---------
Revenue $2,037.1 $ - $2,037.1
Expenses 777.6 160.6(a) 938.2
-------- ----------- ---------
Operating income 1,259.5 (160.6) 1,098.9
Interest and other non-operating
income, net 1.0 - 1.0
-------- ----------- ---------
Income before provision for income
taxes 1,260.5 (160.6) 1,099.9
Provision for income taxes 506.6 (64.1)(b) 442.5
-------- ----------- ---------
Net income $ 753.9 $ (96.5) $ 657.4
-------- ----------- ---------
Basic earnings per share $ 2.65 $ 2.31
-------- ---------
Diluted earnings per share $ 2.58 $ 2.25
-------- ---------
----------------------------------- -------- ----------- ---------
In addition to its reported results, Moody´s has included in the table
above adjusted results that the Securities and Exchange Commission
defines as "non-GAAP financial measures." Management believes that
such non-GAAP financial measures, when read in conjunction with the
company´s reported results, can provide useful supplemental
information for investors analyzing period to period comparisons of
the company´s growth. The table above shows Moody´s results for the
three months and twelve months ended December 31, 2006, adjusted to
reflect the following:
(a) To exclude the gain on sale of building.
(b) To reflect the income tax impacts related to the adjustment
described in note (a) and to exclude an income tax benefit of $2.4
million for the full year of 2006 related to legacy tax matters.
* May not add due to rounding.
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Moody´s Corporation
Summary Impact of Reorganization on Revenue
Amounts in millions Twelve Months Ended December 31, 2007
-------------------------------------------
Currently Reclassifications 2008 Adjusted
Reported (a) Presentation
---------- ----------------- --------------
Structured
finance $ 890.6 $ (4.7) $ 885.9
Corporate
finance 465.4 (53.9) 411.5
Financial
institutions 303.1 (41.4) 261.7
Public finance 120.8 (120.8) -
Public, project and
infrastructure finance - 220.8 220.8
---------- ----------------- --------------
Total ratings
revenue 1,779.9 - 1,779.9
Research
revenue 324.3 (324.3) -
---------- ----------------- --------------
Total Moody´s Investors
Service 2,104.2 (324.3) 1,779.9
Moody´s KMV 154.8 (154.8) -
Moody´s Analytics - 479.1 479.1
---------- ----------------- --------------
Total revenue Moody´s
Corporation $2,259.0 $ - $2,259.0
========== ================= ==============
Twelve Months Ended December 31, 2006
-------------------------------------------
Currently Reclassifications 2008 Adjusted
Reported (a) Presentation
---------- ----------------- --------------
Structured
finance $ 880.6 $ 3.0 $ 883.6
Corporate
finance 380.1 (2.5) 377.6
Financial
institutions 266.8 (44.7) 222.1
Public finance 112.3 (112.3) -
Public, project and
infrastructure finance 156.5 156.5
---------- ----------------- --------------
Total ratings
revenue 1,639.8 - 1,639.8
Research
revenue 254.5 (254.5) -
---------- ----------------- --------------
Total Moody´s Investors
Service 1,894.3 (254.5) 1,639.8
Moody´s KMV 142.8 (142.8) -
Moody´s Analytics - 397.3 397.3
---------- ----------------- --------------
Total revenue Moody´s
Corporation $2,037.1 $ - $2,037.1
========== ================= ==============
(a) Adjustments relate to the business reorganization announced in
August 2007 which became effective as of January 1, 2008. It reflects
the combination of the research business, previously classified in
Moody´s Investors Service, and Moody´s KMV to form Moody´s Analytics.
Additionally, sovereign and sub-sovereign ratings were moved from the
financial institutions business and were combined with public finance
and project and infrastructure ratings, which were previously part of
structured finance, to form a new business line called Public,
project and infrastructure finance. Finally, real estate investment
trust ratings were moved from corporate finance to the structured
finance business.
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