MOODYS CORP /DE/MCO
MOODYS CORP /DE/ Debt Disclosure
INDEBTEDNESS
The Company’s debt is recorded at its carrying amount, which represents the issuance amount plus or minus any issuance premium or discount, except for certain debt as depicted in the table below, which is recorded at the carrying amount adjusted for the fair value of an interest rate swap used to hedge the fair value of the note.
The following table summarizes total indebtedness:
| December 31, 2025 | |||||||||||||||||||||||||||||
| Notes Payable: | Principal Amount | Fair Value of Interest Rate Swaps(1) | Unamortized (Discount) Premium | Unamortized Debt Issuance Costs | Carrying Value | ||||||||||||||||||||||||
5.25% 2014 Senior Notes, due 2044 | $ | 600 | $ | (18) | $ | 3 | $ | (4) | $ | 581 | |||||||||||||||||||
1.75% 2015 Senior Notes, due 2027 | 587 | — | — | — | 587 | ||||||||||||||||||||||||
3.25% 2017 Senior Notes, due 2028 | 500 | — | (1) | (1) | 498 | ||||||||||||||||||||||||
4.25% 2018 Senior Notes, due 2029 | 400 | (19) | (1) | (1) | 379 | ||||||||||||||||||||||||
4.875% 2018 Senior Notes, due 2048 | 400 | (21) | (6) | (3) | 370 | ||||||||||||||||||||||||
0.950% 2019 Senior Notes, due 2030 | 881 | — | (2) | (3) | 876 | ||||||||||||||||||||||||
3.25% 2020 Senior Notes, due 2050 | 300 | — | (4) | (3) | 293 | ||||||||||||||||||||||||
2.55% 2020 Senior Notes, due 2060 | 300 | — | (2) | (3) | 295 | ||||||||||||||||||||||||
2.00% 2021 Senior Notes, due 2031 | 600 | — | (5) | (3) | 592 | ||||||||||||||||||||||||
2.75% 2021 Senior Notes, due 2041 | 600 | — | (11) | (4) | 585 | ||||||||||||||||||||||||
3.10% 2021 Senior Notes, due 2061 | 500 | — | (7) | (5) | 488 | ||||||||||||||||||||||||
3.75% 2022 Senior Notes, due 2052 | 500 | (23) | (8) | (4) | 465 | ||||||||||||||||||||||||
4.25% 2022 Senior Notes, due 2032 | 500 | (3) | (1) | (3) | 493 | ||||||||||||||||||||||||
5.00% 2024 Senior Notes, due 2034 | 500 | — | (4) | (4) | 492 | ||||||||||||||||||||||||
Total debt | $ | 7,168 | $ | (84) | $ | (49) | $ | (41) | $ | 6,994 | |||||||||||||||||||
| December 31, 2024 | |||||||||||||||||||||||||||||
Notes Payable: | Principal Amount | Fair Value of Interest Rate Swaps (1) | Unamortized (Discount) Premium | Unamortized Debt Issuance Costs | Carrying Value | ||||||||||||||||||||||||
5.25% 2014 Senior Notes, due 2044 | $ | 600 | $ | (32) | $ | 3 | $ | (4) | $ | 567 | |||||||||||||||||||
1.75% 2015 Senior Notes due 2027 | 518 | — | — | (1) | 517 | ||||||||||||||||||||||||
3.25% 2017 Senior Notes, due 2028 | 500 | (13) | (2) | (1) | 484 | ||||||||||||||||||||||||
4.25% 2018 Senior Notes, due 2029 | 400 | (35) | (1) | (1) | 363 | ||||||||||||||||||||||||
4.875% 2018 Senior Notes, due 2048 | 400 | (35) | (6) | (3) | 356 | ||||||||||||||||||||||||
0.950% 2019 Senior Notes, due 2030 | 776 | — | (1) | (3) | 772 | ||||||||||||||||||||||||
3.75% 2020 Senior Notes, due 2025 | 700 | (3) | — | — | 697 | ||||||||||||||||||||||||
3.25% 2020 Senior Notes, due 2050 | 300 | — | (4) | (3) | 293 | ||||||||||||||||||||||||
2.55% 2020 Senior Notes, due 2060 | 300 | — | (2) | (3) | 295 | ||||||||||||||||||||||||
2.00% 2021 Senior Notes, due 2031 | 600 | — | (6) | (4) | 590 | ||||||||||||||||||||||||
2.75% 2021 Senior Notes, due 2041 | 600 | — | (12) | (5) | 583 | ||||||||||||||||||||||||
3.10% 2021 Senior Notes, due 2061 | 500 | — | (7) | (5) | 488 | ||||||||||||||||||||||||
3.75% 2022 Senior Notes, due 2052 | 500 | (43) | (8) | (5) | 444 | ||||||||||||||||||||||||
4.25% 2022 Senior Notes, due 2032 | 500 | (8) | (2) | (3) | 487 | ||||||||||||||||||||||||
5.00% 2024 Senior Notes, due 2034 | 500 | — | (4) | (4) | 492 | ||||||||||||||||||||||||
| Total long-term debt | $ | 7,694 | $ | (169) | $ | (52) | $ | (45) | $ | 7,428 | |||||||||||||||||||
| Current portion | (697) | ||||||||||||||||||||||||||||
| Total long-term debt | $ | 6,731 | |||||||||||||||||||||||||||
(1)The fair value of interest rate swaps in the tables above represents the cumulative amount of fair value hedging adjustments included in the carrying amount of the hedged debt.
Credit Facility
On May 6, 2024, the Company entered into a five-year senior, unsecured revolving credit facility with the capacity to borrow up to $1.25 billion, which expires in May 2029. Further information on the key terms of this revolving credit facility is below:
| December 31, 2025 | December 31, 2024 | ||||||||||||||||||||||||||||||||||||||||
| Issue Date | Capacity | Maturity | Drawn | Undrawn | Drawn | Undrawn | |||||||||||||||||||||||||||||||||||
2024 Credit Facility | May 6, 2024 | $ | 1,250 | May 6, 2029 | $ | — | $ | 1,250 | $ | — | $ | 1,250 | |||||||||||||||||||||||||||||
Interest on borrowings under the 2024 Credit Facility is payable at rates that are based on an adjusted term SOFR Rate plus a premium that can range from 80.5 BPS to 122.5 BPS, depending on the Company’s index debt ratings, as set forth in the 2024 Credit Facility. The Company also has the option to choose other rates, such as those based on adjusted Daily Simple SOFR or an alternate base rate, as set forth in the 2024 Credit Facility. Regardless of borrowing activity under the 2024 Credit Facility, the Company pays quarterly fees for the 2024 Credit Facility that can range from 7 BPS of the 2024 Credit Facility amount to 15 BPS, depending on the Company’s index debt ratings. The 2024 Credit Facility contains certain customary covenants and also contains a financial covenant that requires the Company to maintain a total debt to EBITDA Ratio of (i) not more than 4 to 1 at the end of any fiscal quarter or (ii) not more than 4.5 to 1 as of the end of the first three consecutive quarters immediately following any acquisition with consideration in excess of $500 million, subject to certain conditions as set forth in the 2024 Credit Facility.
Commercial Paper
On August 3, 2016, the Company entered into a private placement commercial paper program under which the Company may issue CP notes up to a maximum amount of $1.0 billion. Borrowings under the CP Program are backstopped by the 2024 Credit Facility. Amounts under the CP Program may be re-borrowed. The maturity of the CP Notes will vary, but may not exceed 397 days from the date of issue. The CP Notes are sold at a discount from par, or alternatively, sold at par and bear interest at rates that will vary based upon market conditions. The rates of interest will depend on whether the CP Notes will be a fixed or floating rate. The interest on a floating rate may be based on the following: (a) certificate of deposit rate; (b) commercial paper rate; (c) the federal funds rate; (d) the SOFR; (e) prime rate; (f) Treasury rate; or (g) such other base rate as may be specified in a supplement to the private placement agreement. The CP Program contains certain events of default including, among other things: non-payment of principal, interest or fees; entrance into any form of moratorium; and bankruptcy and insolvency events, subject in certain instances to cure periods. As of December 31, 2025, the Company has no CP borrowings outstanding.
Notes Payable
During the first quarter of 2025, the Company fully repaid the $700 million of 3.75% 2020 Senior Notes which had reached maturity.
At December 31, 2025, the Company was in compliance with all covenants contained within all of the debt agreements. All of the debt agreements contain cross default provisions which state that default under one of the aforementioned debt instruments could in turn permit lenders under other debt instruments to declare borrowings outstanding under those instruments to be immediately due and payable. As of December 31, 2025, there were no such cross defaults.
The repayment schedule for the Company’s borrowings is as follows:
| Year Ending December 31, | Total | ||||
| 2026 | $ | — | |||
| 2027 | 587 | ||||
| 2028 | 500 | ||||
| 2029 | 400 | ||||
| 2030 | 881 | ||||
| Thereafter | 4,800 | ||||
| Total | $ | 7,168 | |||
Interest expense, net
The following table summarizes the components of interest as presented in the consolidated statements of operations and the cash paid for interest:
| Year Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
Expense on borrowings(1) | $ | (251) | $ | (300) | $ | (296) | |||||||||||
(Expense) income on UTPs and other tax related liabilities(2) | 3 | (13) | 8 | ||||||||||||||
| Net periodic pension costs - interest component | (30) | (26) | (26) | ||||||||||||||
| Income | 65 | 102 | 63 | ||||||||||||||
| Interest expense, net | $ | (213) | $ | (237) | $ | (251) | |||||||||||
Interest paid(3) | $ | 235 | $ | 280 | $ | 281 | |||||||||||
(1) Expense on borrowings includes interest on long-term debt, as well as realized gains/losses related to interest rate swaps and cross currency swaps, which are more fully discussed in Note 6.
(2) The amount for the year ended December 31, 2025 includes a $15 million reduction of tax-related interest expense related to the lapse in the statute of limitations of certain tax positions. Refer to Note 15 for additional information. The amount for the year ended December 31, 2023 includes a $22 million reduction of tax-related interest expense primarily related to the resolutions of tax matters.
(3) Interest paid includes net settlements on interest rate swaps more fully discussed in Note 6.
The fair value and carrying value of the Company’s debt as of December 31, 2025 and 2024 are as follows:
| December 31, 2025 | December 31, 2024 | ||||||||||||||||||||||
| Carrying Amount | Estimated Fair Value | Carrying Amount | Estimated Fair Value | ||||||||||||||||||||
Total debt | $ | 6,994 | $ | 6,245 | $ | 7,428 | $ | 6,601 | |||||||||||||||
The fair value of the Company’s debt is estimated based on quoted prices in active markets as of the reporting date, which are considered Level 1 inputs within the fair value hierarchy.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 18, 2026 | Showing above |
| 2024 | Feb 14, 2025 | |
| 2023 | Feb 14, 2024 | |
| 2022 | Feb 15, 2023 | |
| 2021 | Feb 22, 2022 | |
| 2020 | Feb 22, 2021 | |
| 2019 | Feb 24, 2020 | |
| 2018 | Feb 25, 2019 | |
About Debt Disclosures
Debt disclosures detail a company's borrowing structure — the types of instruments, interest rates, maturity schedule, and covenant restrictions that define its financial obligations and flexibility. This section is essential for assessing refinancing risk, interest rate exposure, and the margin of safety against financial distress.
Key signals: the maturity schedule reveals concentration risk — large maturities within 1-2 years during tight credit markets can force dilutive refinancing or asset sales. Compare the fair value of debt against carrying amount to gauge whether the market views the company's credit risk differently than the balance sheet suggests. Watch covenant compliance disclosures for tightening cushions, especially leverage and interest coverage ratios. Variable-rate debt exposure quantifies sensitivity to interest rate changes. Secured versus unsecured mix affects recovery rates and future borrowing capacity. Compare net debt-to-EBITDA against industry peers and covenant limits to assess financial health.