A bullish thesis on Moody’s Corporation highlights its dominant position in a legally protected credit ratings duopoly with S&P Global, controlling roughly 80% of the global ratings market. The company benefits from accelerating AI infrastructure investments and rapid private credit expansion, with Moody’s Investors Service rating more than $2 trillion of debt issuance in the first quarter of 2026, including over $100 billion tied to AI-related financings, while private credit revenue grew more than 80% year over year. Moody’s capital-light model generates free cash flow margins exceeding 33% and a return on equity of 62.1%, and Warren Buffett’s Berkshire Hathaway holds a 13.5% stake. A $2.5 billion share repurchase program further supports per-share value, though no numerical upside target was specified.
Moodys CorporationMoody's benefits from AI-driven debt issuance and private credit growth, with over $2 trillion rated in Q1 2026 and private credit revenue up >80%.
S&P Global Inc
Berkshire Hathaway Inc