A Moody's sign on the 7 World Trade Center tower is photographed in New York August 2, 2011.MIKE SEGAR/Reuters
Bond-rating company Moody's Corp. raised its profit forecast for the year as it expects strong growth in its corporate bond rating and analytics businesses.
Moody's upbeat forecast indicates that companies, which stayed away from issuing bonds during the European debt crisis, are likely coming back to the market to raise money.
The company said it expects full-year profit of between $2.76 (U.S.) and $2.86 per share and pro-forma earnings of between $2.70 and $2.80 per share.
Moody's expects revenue from its corporate bond rating business to increase in the high-single-digit per cent range for the year.
Its analytics division, which sells financial research, risk management tools and consulting services, is expected to record revenue in the high-teens per cent range.
In July the company had said it expects full-year earnings toward the "upper end" of its $2.62 to $2.72 per share forecast range.
Analysts on average were expecting the company to earn $2.72 per share on revenue of $2.54-billion, according to Thomson Reuters I/B/E/S.
Moody's also raised its share repurchase to about $300 -million.
The company, however, said it expects both revenue and expenses to grow between 12 per cent and 13 per cent.
Moody's is holding its 2012 Investor Day conference in New York City on Wednesday.
The company's shares, which have risen nearly 26 percent this year, closed at $42.50 on the New York Stock Exchange on Tuesday.