Moody's: Time To Reassess Lagging Ratings Agencies (Rating Downgrade)

Moody's has underperformed major indexes over the past five years, with volatile growth and a diluted business mix weighing on returns. The core Ratings segment remains high quality but is highly sensitive to macro cycles, while Analytics growth adds stability but lowers overall valuation. Second-quarter results were better than feared, but guidance and long-term growth expectations remain in the 7% range, below market leaders.