Morgan Stanley reports that Moody's and S&P Global will benefit from debt issuance levels through 2026 that exceed initial forecasts.
Debt issuance rose 13% year-over-year during the first quarter. This growth creates a favorable operating environment for credit rating agencies.
Moody's recently reported an earnings beat and increased its full-year guidance. The company also implemented a dividend hike following significant stock returns over the past year.
Analysts expect continued strength in the debt markets to support further expansion for the agency.