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NEW YORK - Moody’s Corporation (NYSE:MCO) announced Monday it plans to secure a majority equity stake in Middle East Rating & Investors Service (MERIS), a domestic credit rating agency in Egypt.
The transaction, which is subject to regulatory approvals, strengthens a partnership that began when MERIS was founded in 2003 as a joint venture between Moody’s and FinBi, a local Egyptian consulting firm. The expansion comes as Moody’s demonstrates robust financial performance, with revenue growth of 11.47% and an impressive 72.78% gross profit margin in the last twelve months.
"We are excited to strengthen our relationship with MERIS, which has been an important provider of domestic credit ratings in Egypt for over two decades," said Monica Merli, Chief Operating Officer of Moody’s Ratings.
MERIS provides national scale credit ratings across various sectors including financial institutions, corporates, and structured finance transactions in Egypt.
Following the completion of the deal, MERIS will continue to operate as an independent affiliate of Moody’s while developing its own rating methodologies, issuing its own credit ratings, and maintaining a separate management team.
Dr. Amr Hassanein, Managing Director and Founder of MERIS, described the transaction as "an important milestone in MERIS’s history."
The financial terms of the transaction were not disclosed, according to the company’s press release statement.
The acquisition deepens Moody’s presence in the Middle East and Africa region as part of its strategy to contribute to the development of local capital markets globally.
Moody’s Corporation currently employs approximately 16,000 people across more than 40 countries worldwide.
In other recent news, Moody’s Corporation reported impressive second-quarter 2025 financial results, surpassing Wall Street expectations. The company achieved an adjusted EPS of $3.56, exceeding the forecast of $3.38, and reported revenue of $1.9 billion, which also beat the anticipated $1.85 billion. Despite these strong earnings, Moody’s stock experienced a decline in premarket trading, influenced by broader market conditions. Additionally, Moody’s announced the resignation of Stephen Tulenko as President of Moody’s Analytics, with Andy Frepp stepping in as Interim President. The company has begun searching for a permanent replacement for this role. Analyst firm BMO Capital raised its price target for Moody’s to $534, citing improved issuance activity, while maintaining a Market Perform rating. However, Raymond James reiterated its Underperform rating, despite acknowledging a generally healthy quarter for issuance in the credit markets. These developments highlight Moody’s ongoing adjustments and the mixed sentiment among analysts regarding its future performance.
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