Though Moody's reputation was damaged by all that unpleasantness, business has rebounded, thanks to heavy corporate and government debt issuance in the past few years. In fact, Moody's is generating so much cash that it said Wednesday it would increase its dividend payout by 25% and buy back a cart-load of shares. Its stock price jumped by 5% on the news and now trades at the same levels it fetched back in the good old days of 2007.
In part, Moody's durability stems from the fact it has been around for decades and investors are accustomed to working with it, even if they aren't necessarily enthralled with its work.
Moody's also has the government to thank for its upswing in fortunes. It and S&P are what's known as "nationally recognized statistical rating organizations." That means the Securities and Exchange Commission has determined that institutional investors like insurance companies can use the companies' opinions on creditworthiness as a basis for making investment decisions.
Moody's and the joys of duopoly
JULY 24, 2013
No pretendo dar consejos económicos, no soy economista, pero esto no se ha discutido...
|Los sindicatos dirigidos por|
Jaramillo no apoyan a la
Policía de Puerto Rico
a menos que los policías opten por
la revolución sindical.
¿De qué lado están?