Moody’s Purchases Cortera


In today’s very brief post, information on Moody’s’ latest acquisition is introduced although, at the time of writing, not much information is available regarding the specifics of the deal – it is unlikely to be a costly acquisition, but it further boosts the agency’s offerings on small business-related information.

 

Moody’s, via its Moody’s Analytics arm, partnered with Cortera in 2018. Cortera, a company which analyses small business mainly (under 500 employees), has built one the world’s largest databases on such entities. In 2018, Moody’s Analytics partnered with the firm to accentuate their ‘small business lending solution’. At the time, the founder of Cortera – Jim Swift – noted that a ‘lender’s ability to assess the credit risk of small private companies can be challenging with traditional sources… incorporating our trade credit data will enhance the Moody’s Analytics solution by offering its clients a wealth of insight into these businesses’. The service, which reminds one of the original purpose of the credit reference agencies back in the 1800s, is clearly of use to Moody’s because, yesterday, it was announced that the agency was to purchase Cortera for an undisclosed amount. It has been noted that the acquisition will be funded by cash and ‘is not expected to have a material effect on Moody’s 2021 financial results’.

 

Moody’s itself has yet to provide comment, nor has Cortera.

 

Keywords – Credit rating, business, mergers and acquisitions, @finregmatters

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