Moody's Corporation Acquires Barrie & Hibbert

NEW YORK--(BUSINESS WIRE)-- Moody's Corporation announced today that it has acquired Barrie & Hibbert Limited, a leading provider of risk management modeling tools for insurance companies worldwide.

The acquisition broadens Moody's Analytics suite of software solutions for the insurance and pension sectors. With more than 150 customers around the world, Barrie & Hibbert's Economic Scenario Generator (ESG) is widely recognized as an industry standard for valuing and projecting assets and liabilities and assessing risk and capital positions.

In addition, Barrie & Hibbert's offerings and expertise in understanding the risks in long-term asset and liability management will enhance Moody's data management, capital calculation and regulatory reporting platform to further meet the needs of institutions as they undertake risk management and regulatory compliance activities.

"Barrie & Hibbert has built a strong reputation for its specialized expertise and unique product offerings for insurance risk management," said Mark Almeida, President of Moody's Analytics. "Adding Barrie & Hibbert's skills and experience to Moody's Analytics expands our ability to help insurers meet worldwide solvency modernization initiatives including Solvency II and other regulatory challenges, and reinforces our commitment to assisting financial institutions as they address a growing array of risk management needs."

"We are pleased to be joining a dynamic organization that is recognized as a global leader in helping financial institutions manage risk. The combination of Moody's Analytics and Barrie & Hibbert will benefit our clients by providing them with a broader and more robust set of tools and services to assess financial risk and respond to regulatory requirements," said Andy Frepp, CEO of Barrie & Hibbert.

Moody's purchased Barrie & Hibbert for GBP 50 million (USD $77.6 million), and the acquisition was funded from cash on hand. Reflecting the unfavorable impact of purchase accounting and integration costs, the transaction is expected to be several cents dilutive to Moody's GAAP earnings per share in 2012.

Based in Edinburgh, Scotland, Barrie & Hibbert will be integrated into the Moody's Analytics Risk Management Software segment, which includes a range of award winning products used by financial institutions around the world.

About Moody's Corporation
Moody's is an essential component of the global capital markets, providing credit ratings, research, tools and analysis that contribute to transparent and integrated financial markets. Moody's Corporation (NYSE: MCO) is the parent company of Moody's Investors Service, which provides credit ratings and research covering debt instruments and securities, and Moody's Analytics, which offers leading-edge software, advisory services and research for credit and economic analysis and financial risk management. The Corporation, which reported revenue of $2.0 billion in 2010, employs approximately 6,000 people
worldwide and maintains a presence in 27 countries. Further information is available at www.moodys.com.

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995
Certain statements contained in this release are forward-looking statements and are based on future expectations, plans and prospects for Moody's business and operations that involve a number of risks and uncertainties. Moody's forward-looking statements in this release are made as of the date hereof, and the Company disclaims any duty to supplement, update or revise such statements on a going-forward basis, whether as a result of subsequent developments, changed expectations or otherwise. In connection with the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, the Company is identifying certain forward-looking information regarding, among other things, the acquisition by Moody's of Barrie & Hibbert. Actual events or results may differ materially from those contained in these forward-looking statements. Important factors that could cause future events or results to vary from those addressed in the forward-looking statements include, without limitation, risks and uncertainties arising from the ability of Moody's to successfully integrate the Barrie & Hibbert business into its operations, to successfully retain customers and key employees of Barrie & Hibbert and to implement its plans, forecasts and other expectations with respect to Barrie & Hibbert's business after the transaction and realize additional opportunities for growth and innovation; uncertainties relating to the ability to realize the expected benefits of the acquisition; unanticipated or unfavorable regulatory matters; general economic conditions in the regions and industries in which Moody's and Barrie & Hibbert operate; and other risk factors as discussed in the Company's annual report on Form 10-K for the year ended December 31, 2010 and in other filings made by the Company from time to time with the Securities and Exchange Commission.

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