Moody's is an oligopoly— they have 95% market share in the credit rating industry.
They have a sustainable moat in pricing power: There has been an average 3.5% rate increase per annum for the past 15 years.
Moody's has a moat because if you want to issue credit globally you are required to get a credit rating from one of the three credit rating agencies.
- Regulation is their moat
- They've been in business over 100 years
- The data they've accumulated over all these years is now turning into a SaaS business where customers buy their data
I've bought twice in the last year⤵