Moody's Corp (MCO.N: Quote, Profile, Research, Stock Buzz), the parent of credit rating agency Moody's Investors Service, cut its 2008 forecast and reported a 17 percent drop in third-quarter profit as demand plummeted for new bond ratings.
But the results topped analysts' forecasts, and Moody's shares rose in early-afternoon trading on Wednesday, after having fallen by about half since early September.
Ratings activity "has seized up, and business may be falling off a cliff in October," Edward Atorino, an analyst at Benchmark Co in New York, said after the results were released. "But the commercial paper market has picked up, and there may be deals in the pipeline, including internationally. Maybe the market is thinking the fourth quarter is the bottom."
