Moody's is an oligopoly with S&P and Fitch, and has an unfair advantage

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.
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Moody’s valuation isn’t justified, I don’t know if its a good fit for the portfolio or not

Maybe they might be disrupted

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