UPDATE 3-Moody’s cautious about rest of 2010, shares down

* Q1 EPS $0.47 vs. $0.38 year earlier,

* Results beat expectations

* Company keeps full year guidance unchanged

* CEO cautions that debt issuance volumes may fall

* Shares fall 1.5 percent to $26.72
(Recasts first paragraph to include outlook, updates shares,
adds detail on structured finance)

By Elinor Comlay and Dan Wilchins

NEW YORK, April 21 (BestGrowthStock) – Moody’s Corp (MCO.N: ), a bond
rating company, posted better-than-expected first-quarter
profit, but cautioned that the high debt issuance that fueled
its results may not continue.

The company’s shares fell 1.5 percent to $26.72 in early
afternoon trading on the New York Stock Exchange.

The New York-based parent of Moody’s Investors Service said
that it was keeping its full year guidance unchanged, even
after the strong quarter, because debt issuance levels later
this year may not be high enough to make up for weak issuance
in structured finance.

Moody’s has taken a drubbing from investors, politicians,
and others for its structured finance business, which generated
big profit for the company earlier this decade but according to
critics helped inflate the real estate bubble as well.

Structured finance revenue fell 1.2 percent, and hovered at
about a third of its level before the financial crisis.

Quarterly profit rose to $113.4 million, or 47 cents per
share, from $90.2 million, or 38 cents per share, a year
earlier.

Analysts on average expected earnings of 44 cents a share
on revenue of $456.2 million, according to Thomson Reuters
I/B/E/S.

Revenue rose 17 percent to $476.6 million from $408.9
million. Structured finance revenue fell to $71.5 million from
$72.4 million.

The New York-based company left in place its full-year 2010
guidance of $1.75 to $1.85 a share.

Like rival Standard & Poor’s, owned by McGraw-Hill Cos
(MHP.N: ), Moody’s may face new laws and regulations as financial
reform efforts continue.

Stock Market Trading

(Reporting by Elinor Comlay; Editing by Lisa Von Ahn, Dave
Zimmerman and Tim Dobbyn)

UPDATE 3-Moody’s cautious about rest of 2010, shares down