Moody’s is an oligopoly along with S&P and Fitch in the credit rating sector, they boast a 95% market dominance.
They have a sustained moat in pricing power: annual rate increases have averaged 3.5 percent over the last 15 years.
Moody’s has a moat since it is essential to get a credit rating from one of the three credit rating firms to provide credit internationally.
- Their moat is regulation.
- They’ve been in business for almost a century.
- The data they’ve amassed over the years is now being turned into a SaaS business where clients can buy their data.