Moody’s forecasts rough 2008

Moody’s Corp. has lowered its 2008 performance projections in anticipation of a longer-than-expected slump in the mortgage markets, published reports said.
The per share profit of the New York-based ratings agency is forecasted to fall to between $1.90 and $2 in March from February projections of $2.17 to $2.25, Moody’s chief executive officer Raymond McDaniel said today at a conference hosted by The Bear Stearns & Cos. according to published reports.
“We had just a complete freeze in some market sectors and we are trying to quite frankly, catch up with that reality,” said Mr. McDaniel.
Moody’s, along with competing rating agency Standard & Poor’s, have been criticized recently by the Securities & Exchange Commission for not doing enough to stop the latest U.S mortgage crisis (InvestmentNews, Sept. 26).
Moody’s posted a $127.3 million, or 54% drop, in fourth-quarter earnings, which the company attributed to declines in revenue from ratings and structured finance due to the current mortgage meltdown.