Here's What You Need to Know About Moody's in 2022
Credit rating agency Moody's (NYSE: MCO) saw business get a boost over the past two years, as low interest rates and favorable market conditions drove record levels of bond and debt issuance. As a result, its ratings activity boomed, and the stock outperformed in 2021, returning 34.5% versus the S&P 500's 27%.
However, Moody's may see headwinds in 2022. Investors have grown more concerned about inflationary pressures, and the Federal Reserve has discussed raising interest rates for the first time since the COVID-19 pandemic began. Here's what Moody's investors should watch for in 2022.
When companies issue debt, ratings agencies like Moody's bring transparency to these credit markets by giving debt issuances a rating score. These agencies grade bonds or other debt instruments that companies issue, determining how well those companies can meet their debt payment obligations.
Source Fool.com