Moody’s shares rise on upgrade
Moody’s Corp. (MCO) shares were up about 8% Wednesday morning after Benchmark Co. upgraded the credit rater to buy from hold, citing the “apparent strength” of debt issuance during the fourth quarter and into 2010. “We believe the surge in bond issuance will lift Moody’s fourth-quarter revenues and earnings and lead to higher management guidance for 2010,” analyst Edward Atorino said in a note.
He also pointed to a federal judge this week dismissing all claims in a lawsuit against Moody’s related to mortgage-backed securities, and better-than-expected quarterly results from McGraw-Hill Cos. (MHP), which owns rival Standard & Poor’s. Separately, Benchmark upgraded McGraw-Hill to buy from hold on Wednesday, and the stock was up 4% in recent action.