Moody’s to Acquire Equilibrium
13 March 2015 - 5:00AM
Business Wire
Moody’s Corporation (NYSE:MCO) announced today that it has
agreed to acquire Equilibrium, a leading provider of credit rating
and research services in Peru and other countries in Latin
America.
Based in Peru, Equilibrium has operated since 1996. Following
the acquisition, Equilibrium will continue to issue domestic
ratings in Peru and Panama with an independent analytical and
rating committee process. Renzo Barbieri will continue to lead
Equilibrium’s operations following the acquisition.
“Equilibrium is highly-regarded for the quality of its credit
ratings and research and the broad scope of its analytical
coverage,” said Raymond McDaniel, President and Chief Executive
Officer of Moody's. “This acquisition positions Equilibrium to
serve the growing needs of issuers and investors across Latin
America while deepening Moody’s presence in this dynamic and
expanding market.”
Equilibrium and Moody’s Investors Service have had a technical
services agreement since 2007, through which Moody's has provided
Equilibrium with technical support based on its globally recognized
credit analysis techniques for companies, governments, financial
institutions and structured finance.
The acquisition is expected to close in the second quarter of
2015, subject to regulatory approval. It is not expected to have an
impact on Moody’s earnings per share in 2015 and will be funded
from a combination of US and international cash on hand.
Equilibrium’s operations in El Salvador will not be acquired; the
other terms of the transaction were not disclosed.
ABOUT MOODY’S CORPORATION
Moody's is an essential component of the global capital markets,
providing credit ratings, research, tools and analysis that
contribute to 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, which offers
leading-edge software, advisory services and research for credit
and economic analysis and financial risk management. The
Corporation, which reported revenue of $3.3 billion in 2014,
employs approximately 9,900 people worldwide and maintains a
presence in 33 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 the Company’s business and operations that involve a
number of risks and uncertainties. The forward-looking statements
in this release are made as of the date hereof, 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 examples of factors,
risks and uncertainties that could cause actual results to differ,
perhaps materially, from those indicated by these forward-looking
statements. Those factors, risks and uncertainties include, but are
not limited to, the current world-wide credit market disruptions
and economic slowdown, which is affecting and could continue to
affect the volume of debt and other securities issued in domestic
and/or global capital markets; other matters that could affect the
volume of debt and other securities issued in domestic and/or
global capital markets, including credit quality concerns, changes
in interest rates and other volatility in the financial markets;
the level of merger and acquisition activity in the US and abroad;
the uncertain effectiveness and possible collateral consequences of
U.S. and foreign government initiatives to respond to the current
world-wide credit market disruptions and economic slowdown;
concerns in the marketplace affecting our credibility or otherwise
affecting market perceptions of the integrity or utility of
independent credit agency ratings; the introduction of competing
products or technologies by other companies; pricing pressure from
competitors and/or customers; the level of success of new product
development and global expansion; the impact of regulation as a
nationally recognized statistical rating organization, the
potential for new U.S., state and local legislation and
regulations, including provisions in the Dodd-Frank Wall Street
Reform and Consumer Protection Act (the “Financial Reform Act”) and
regulations resulting from that act; the potential for increased
competition and regulation in the EU and other foreign
jurisdictions; exposure to litigation related to our rating
opinions, as well as any other litigation to which the Company may
be subject from time to time; provisions in the Financial Reform
Act legislation modifying the pleading standards, and EU
regulations modifying the liability standards, applicable to credit
rating agencies in a manner adverse to credit rating agencies;
provisions of EU regulations imposing additional procedural and
substantive requirements on the pricing of services; the possible
loss of key employees; failures or malfunctions of our operations
and infrastructure; any vulnerabilities to cyber threats or other
cybersecurity concerns; the outcome of any review by controlling
tax authorities of the Company’s global tax planning initiatives;
the outcome of those legacy tax matters and legal contingencies
that relate to the Company, its predecessors and their affiliated
companies for which the Company has assumed portions of the
financial responsibility; the impact of mergers, acquisitions or
other business combinations and the ability of the Company to
successfully integrate the acquired businesses; currency and
foreign exchange volatility; the level of future cash flows; the
levels of capital investments; and a decline in the demand for
credit risk management tools by financial institutions. These
factors, risks and uncertainties as well as other risks and
uncertainties that could cause the Company’s actual results to
differ materially from those contemplated, expressed, projected,
anticipated or implied in the forward-looking statements are
described in greater detail under “Risk Factors” in Part I, Item 1A
of the Company’s Annual Report on Form 10-K for the year ended
December 31, 2014, and in other filings made by the Company from
time to time with the SEC or in materials incorporated therein.
Stockholders and investors are cautioned that the occurrence of any
of these factors, risks and uncertainties may cause the Company’s
actual results to differ materially from those contemplated,
expressed, projected, anticipated or implied in the forward-looking
statements, which could have a material and adverse effect on the
Company’s business, results of operations and financial condition.
New factors may emerge from time to time, and it is not possible
for the Company to predict new factors, nor can the Company assess
the potential effect of any new factors on it.
Moody’s CorporationMEDIA:Michael Adler, 212-553-4667Senior Vice
PresidentCorporate Communicationsmichael.adler@moodys.comorINVESTOR
RELATIONS:Salli Schwartz, 212-553-4862Global Head of Investor
Relationssallilyn.schwartz@moodys.com
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