Moody's to Acquire SCRiesgo, Expanding Reach in Latin American Domestic Credit Markets

Moody’s to Acquire SCRiesgo, Expanding Reach in Latin American Domestic Credit Markets

NEW YORK–(BUSINESS WIRE)–Moody’s Corporation (NYSE: MCO) today announced that it has agreed to acquire SCRiesgo, a leading group of local credit rating agencies serving the domestic financial markets of Central America and the Dominican Republic. The acquisition significantly expands Moody’s presence in Latin America and reaffirms its commitment and support for the continued development of regional capital markets.

Following the acquisition, SCRiesgo will become a subsidiary of Moody’s Local, Moody’s national credit rating platform, with SCRiesgo continuing to issue national ratings with an independent review and rating committee process. SCRiesgo’s chief executive, Gary Barquero, will continue to lead the company’s operations after the acquisition.

“The maturation of Latin America’s financial markets is a priority for Moody’s as we expand our regional footprint and solidify Moody’s Local and its subsidiaries as the region’s leading national credit rating agencies,” said Martin. Fernandez-Romero, Managing Director and Regional Manager for Latin America for Moody’s Investors Service. “SCRiesgo and its impressive team will deepen Moody’s analytical capabilities, help create greater transparency in national markets and expand our reach in Central America, the Dominican Republic and beyond.

Based in Costa Rica and El Salvador, SCRiesgo provides national credit ratings to banks, financial institutions, investment funds, corporations, public sector issuers and other market participants in Costa Rica, El Salvador , Nicaragua, Panama, Honduras, Guatemala and the Dominican Republic. Republic.

Moody’s Local is a national credit rating platform launched in 2019 to provide ratings and research to Latin American capital markets. The platform combines bespoke methodologies with experienced teams of local analysts to deliver valuable, market-specific insights. Moody’s Local operates in Argentina, Bolivia, Brazil, Mexico, Panama, Peru and Uruguay. Moody’s intends to merge SCRiesgo’s Panama operations with Moody’s Local Panama shortly after closing.

The acquisition of SCRiesgo by Moody’s is subject to regulatory approval in certain jurisdictions. The transaction is expected to close in the second quarter of 2023.

ABOUT MOODY’S CORPORATION

Moody’s (NYSE: MCO) is a global integrated risk assessment company that helps organizations make better decisions. Its data, analytical solutions and insights help decision-makers identify opportunities and manage the risks of doing business with others. We believe that greater transparency, more informed decisions and equitable access to information open the door to shared progress. With approximately 14,000 employees in more than 40 countries, Moody’s combines international presence with local expertise and more than a century of capital markets experience. Learn more at moodys.com/about.

“SAFE HARBOUR” STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995

Certain statements in this release are forward-looking statements and are based on future expectations, plans and prospects for Moody’s business and operations that involve a number of risks and uncertainties. These statements involve estimates, projections, goals, forecasts, assumptions and uncertainties that could cause actual results to differ materially from those contemplated, expressed, projected, anticipated or implied by the forward-looking statements. Shareholders and investors are cautioned not to place undue reliance on these forward-looking statements. The forward-looking statements contained in this release are made as of the date hereof, and Moody’s undertakes no obligation (and does not intend) to publicly supplement, update or revise these statements in the future, whether either as a result of subsequent developments, changed expectations or otherwise, except as required by applicable law or regulation. Under the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, Moody’s identifies certain factors that could cause actual results to differ materially from those indicated by such forward-looking statements. These factors, risks and uncertainties include, but are not limited to, the impact of general economic conditions, including inflation and related monetary policy actions taken by governments in response to inflation, on global markets. credit and economic activity and its effect on the volume of debt and other securities issued in domestic and/or global capital markets; the global impacts of each of the Ukraine and COVID-19 crises on U.S. and global financial market volatility, general economic conditions and GDP in the U.S. and globally, global relationships, and operations and Moody’s personnel; other matters that may affect the volume of debt and other securities issued in domestic and/or global capital markets, including regulation, credit quality issues, changes in interest rates, inflation and other financial market volatility; the level of merger and acquisition activity in the United States and abroad; the uncertain effectiveness and possible collateral consequences of actions by US and foreign governments affecting credit markets, international trade and economic policy, including those related to tariffs, tax agreements and trade barriers; the impact of MIS withdrawing its credit ratings on Russian entities and Moody’s no longer conducting business operations in Russia; market concerns affecting our credibility or otherwise affecting market perceptions about the integrity or usefulness of independent credit agency ratings; the introduction of competing products or technologies by other companies; price pressure from competitors and/or customers; the level of success of new product development and global expansion; the impact of regulation as an NRSRO, the potential for new US, state and local laws and regulations; 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, governmental and regulatory proceeding, inquiry and investigation to which Moody’s may be subject from time to time; provisions of US law amending pleading standards and EU regulations amending liability standards, applicable to credit rating agencies in a manner adverse to credit rating agencies; provisions in EU regulations imposing additional procedural and substantive requirements on service pricing and expanding the oversight mandate to include non-EU ratings used for regulatory purposes; uncertainty regarding the future relationship between the United States and China; possible loss of key employees; failures or malfunctions of our operations and infrastructure; any vulnerabilities to cyber threats or other cyber security issues; the timing and effectiveness of our restructuring programs, such as the 2022 – 2023 geolocation restructuring program; currency and exchange volatility; the outcome of any review by supervisory tax authorities of Moody’s global tax planning initiatives; exposure to potential criminal penalties or civil remedies if Moody’s fails to comply with foreign and U.S. laws and regulations applicable in the jurisdictions in which Moody’s operates, including data protection and privacy laws, sanctions, anti-corruption laws and local laws prohibiting corrupt payments to government officials; the impact of mergers, acquisitions, such as our acquisition of RMS, or other business combinations and Moody’s ability to successfully integrate acquired businesses; the level of future cash flows; capital investment levels; and a decline in demand for credit risk management tools by financial institutions. These factors, risks and uncertainties and other risks and uncertainties that could cause Moody’s actual results to differ materially from those contemplated, expressed, projected, anticipated or implied in the forward-looking statements are described in more detail under “Risk Factors” in Part I, Exhibit 1A of Moody’s Annual Report on Form 10-K for the fiscal year ended December 31, 2021, and in other documents filed by Moody’s from time to time with the SEC or in documents incorporated herein or herein. Shareholders and investors are cautioned that the occurrence of any of these factors, risks and uncertainties may cause Moody’s actual results to differ materially from those contemplated, expressed, projected, anticipated or implied by the forward-looking statements. , which could have a material and adverse effect on Moody’s business, results of operations and financial condition. New factors may appear from time to time, and it is not possible for Moody’s to predict new factors, nor can Moody’s assess the potential effect of any new factors on them.

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