MCO – Market expectations are for slight Uniform ROA fade, and management appears concerned about growth, revenue deferrals, and the Bureau van Dijk acquisition

• Moody’s Corporation (MCO:USA)currently trades around historical highs relative to UAFRS-based (Uniform) Earnings, with a 22.9x Uniform P/E implying fairly bullish expectations for the firm. However, management has concerns about revenue growth and margin expansion
  Specifically, management appears to lack confidence in their ability to sustain revenue growth, and might be downplaying concerns about the Bureau van Dijk acquisition. Moreover, they might have concerns about the sustainability of growth in their corporate business, particularly around first time mandates, and they may be concerned about headwinds related to revenue deferral