Moody's

Moody's is based in New York and splits into Moody's Ratings and Moody's Analytics. The rating agency is paid by the issuer, and a corporate or structured-finance deal often cannot close without a rating from Moody's, S&P, or both, because investors and guidelines name those agencies.

Fitch is the third agency that some indentures accept. Switching is limited: an outstanding bond that required a Moody's rating keeps that relationship for the life of the deal, and a downgrade moves mandates and collateral even when the issuer disagrees with the methodology.

Moody's Analytics sells data, models, and credit-assessment tools that compete with S&P Global Market Intelligence. A bank that has embedded those models in regulatory capital or lending workflow has a renewal that is really a model-risk project.

Indenture and investment-guideline language that names Moody's is the demand for the rating.

Issuer-pays compensation is the commercial structure of the rating, shared with S&P and Fitch.

Analytics models embedded in bank workflows are a separate subscription lock-in.

Bond investors who must hold rated paper depend on the rating staying in place under their guidelines.

Issuers pay for the rating their investors require and have little ability to skip the named agencies.