Q1. Why is Moody's purchasing Wall Street Analytics (WSA)?

This acquisition will enhance Moody's current collateralized debt obligations (CDO) analytics product set and will immediately add mortgage-backed securities (MBS) and asset-backed securities (ABS) analytics as well as providing us with expanded new product capabilities and an attractive existing customer base for new structured analytics products. The combination also provides our ratings groups with an improved tool for monitoring and analysis which will enhance our ongoing ratings. We view this as a strategic investment that will protect and enhance our position in the high growth structured finance market. 

Q2. What are your plans for Wall Street Analytics business?

We plan to grow the business aggressively. This acquisition allows both companies to enhance and expand their products and services to existing customers while providing a deeper pool of dedicated analytic and product development staff to bring new structured finance analytic tools to market.

Q3. How will Moody's strengthen Wall Street Analytics product offerings?

We plan to leverage our unparalleled research, data and analytic expertise and our ratings methodologies to continue development and enhancement of Wall Street Analytics existing products. WSA clients will gain access to a broader, more comprehensive suite of data and research products that is currently provided by Moody's, including Moody's Enhanced Monitoring Service, Performance Data Services, MKMV and Moody's Economy.com. Further, WSA clients will have access to the same tools and functionality that are used by the ratings analysts, offering clients insight and transparency into the ratings process. For example, Moody's plans to enhance the WSA platform with the same analytics used to rate CDOs, which will allow clients to assess the credit quality and analyze the impact of collateral and structural changes for these transactions.

 Q4. Why is Wall Street Analytics doing this deal? Why be acquired by a rating agency?

This transaction will allow Wall Street Analytics to leverage Moody's deep structured finance expertise and global product marketing capabilities to enhance its current product offering and expand internationally, including Europe and Asia. A combination with a rating agency provides a unique value proposition to the market by adding the breadth and depth of structured finance data and research available from Moody's as well as ratings and credit risk methodologies used by ratings analysts and MKMV.

Q5. Will Wall Street Analytics become part of Moody's Investors Service?

Wall Street Analytics will be known as Moody's Wall Street Analytics and will be part of Moody's Investors Services Structured Finance Group. The team will continue to be managed by Jacob Grotta, who will report to Gus Harris, Group Managing Director, Moody's Investors Service.

Q6. Will Wall Street Analytics be moving its operations?

We plan to maintain Wall Street Analytics offices in San Francisco, New York and London.

Q7. Do the two companies have significant customer overlap?

Traditionally, WSA has focused on delivering full reporting functionality for trustees, and collateral managers, and What-if scenario analysis for traders and structurers. Moody's has leveraged its rating processes and models to deliver a different set of services to the same broad clientele. Therefore, the customer overlap is minimal. Moody's and WSA bring to the table complementary capabilities and competencies with distinct synergies.

Q8. Will this impact pricing?

There are no immediate plans to change the pricing of either Wall Street Analytics or Moody's products as a result of this transaction.

Q9. Will both MIS and Wall Street Analytics clients retain their current client support team?

Yes. Wall Street Analytics is known for its excellent client service, and there will be no interruptions to client support. MIS will continue to support clients through its existing client service desks, relationship managers and analysts.