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Moody's Increases MERIS Stake to Expand in the Middle East & Africa

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Key Takeaways

  • Moody's plans majority stake in MERIS, Egypt's domestic credit rating agency, founded in 2003.
  • The deal will expand Moody's Middle East and Africa presence, pending regulatory approvals.
  • MERIS will remain independent, keeping its own ratings, methods and management team.

Moody’s Corp. (MCO - Free Report) announced that it plans to secure a majority equity ownership in Middle East Rating & Investors Service (MERIS), an affiliate of Moody’s and a domestic credit rating agency in Egypt. The terms of the deal remain under wraps.

Founded in 2003, MERIS, a joint venture between Moody’s and Egyptian consultancy FinBi, has been a pioneer in Egypt’s domestic capital markets. The agency issues national-scale credit ratings across various sectors, including financial institutions, corporates and structured finance deals.

Rationale Behind Moody’s Move

This move strengthens the firms’ longstanding partnership. It expands Moody’s presence in the Middle East and Africa, reinforcing its commitment to supporting the growth of local capital markets worldwide.

The deal is subject to regulatory approvals. Following the completion, MERIS will continue to function as an independent affiliate of Moody’s, while producing its own rating methodologies, issuing its own credit ratings and maintaining a separate management team.

Monica Merli, chief operating officer of Moody’s Ratings, stated, “We are excited to strengthen our relationship with MERIS, which has been an important provider of domestic credit ratings in Egypt for over two decades. We look forward to further sharing Moody’s global best practices with MERIS as its experienced team and trusted local insights continue to serve market participants in Egypt.”

This move aligns with Moody’s inorganic growth strategy. In June 2025, it fully acquired ICR Chile, strengthening its presence in Latin America’s domestic credit markets after acquiring a minority stake in 2019. In 2024, it announced the acquisition of Numerated Growth Technologies and a 100% stake in Global Credit Rating Company Ltd to deepen its presence in Africa’s credit market.

Moody’s Price Performance & Zacks Rank

Over the past six months, Moody’s shares have risen 3.5% compared with the industry’s growth of 10.6%.

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Moody’s currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Inorganic Expansion Efforts by Other Finance Firms

Earlier this month, Commerce Bancshares (CBSH - Free Report) received the approvals from the Federal Reserve Bank of Kansas City and the Missouri Division of Finance for its pending FineMark Holdings, Inc. buyout. The transaction, still subject to FineMark shareholders' consent and other customary closing conditions, will close on Jan. 1, 2026.

At the time of announcing the deal, it was noted that shareholders of FineMark will receive 0.690 shares of Commerce Bancshares for each of their shares. The transaction is expected to be 6% accretive to CBSH’s 2026 GAAP earnings, with fully phased cost savings. Cost savings of 15% of FineMark’s non-interest expenses are expected.

Similarly, Fifth Third Bancorp (FITB - Free Report) acquired DTS Connex. The acquisition enhances FITB’s capabilities in cash logistics, infrastructure and risk management within its Commercial Payments business.

DTS Connex’s advanced technology caters to the needs of businesses seeking more efficient, transparent and controlled cash logistics management. By acquiring DTS Connex, FITB will streamline cash operations and foster deeper collaboration across the cash ecosystem through advanced data sharing. This move reinforces the company’s broader strategy to leverage technology and innovation, offering more integrated and advanced service solutions for clients.


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