Rob Fauber

Rob Fauber became president and CEO of Moody's Corporation in 2021, leading one of the most influential companies in global finance. Moody's operates two businesses: Moody's Investors Service (MIS, the credit rating agency) and Moody's Analytics (MA, a data, analytics, and risk management software business). MIS, alongside S&P Global Ratings, forms a duopoly that rates virtually all investment-grade debt issued globally — a position so entrenched that regulators effectively mandate their ratings for institutional investment. The credit rating business model is exceptionally profitable: issuers (not investors) pay for ratings, and once a company obtains a Moody's rating, it almost never switches to a competitor because the market expects continuous coverage from the same agency. Moody's ratings business generates operating margins above 55% — among the highest in all of financial services. Moody's Analytics has been growing faster, providing KYC (know your customer), credit risk, and financial intelligence solutions enhanced by AI and machine learning. Fauber's management of debt issuance volume cycles (which drive ratings revenue), growth in Moody's Analytics through AI-enhanced products, and capital allocation are the primary drivers of the stock.