Rating structured financial products, such as RMBSs, proved to be a highly lucrative business for Moody’s
.Exhibit A presents selected financial results for Moody’s Investors Service for 1999 to 2007. Revenue from structured finance grew as a proportion of Moody’s overall revenue throughout much of this period, peaking at 43 percent in 2006, contributing to the company’s exceptional profitability. Operating margins (the percentage of revenue left after paying most expense) during this period ranged from 48 to 62 % , an unusually high level. In fact, for five years in a row, Moody’s had the highest profit margin of any company in the s&p 500, beating even such consistently successful companies as Microsoft and Exxon
Rating structured financial products, such as RMBSs, proved to be a highly lucrative business for Moody’s .Exhibit A presents selected financial results for Moody’s Investors Service for 1999 to 2007. Revenue from structured finance grew as a proportion of Moody’s overall revenue throughout much of this period, peaking at 43 percent in 2006, contributing to the company’s exceptional profitability. Operating margins (the percentage of revenue left after paying most expense) during this period ranged from 48 to 62 % , an unusually high level. In fact, for five years in a row, Moody’s had the highest profit margin of any company in the s&p 500, beating even such consistently successful companies as Microsoft and Exxon
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