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Moody's to Buy Omega Performance to Enhance Credit Platform

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In an effort to enhance online credit training platform, Moody's Corporation (MCO - Free Report) has agreed to acquire Omega Performance, a business unit of TwentyEighty Inc. While the deal is expected to be completed within 30 days, it is not likely to have any material impact on Moody’s financials in 2018.

Serving more than 300 customers, Omega Performance offers a wide range of online credit training courses.

By providing a customized learning experience, Moody’s Analytics online Credit Coach learning platform allows financial professionals to make better lending decisions. It uses sophisticated algorithms to track respondents’ performance as they study real-life business scenarios. Further, it guides each learner through targeted coursework, which is designed to remediate indicated areas of weakness.

With the merger, Omega’s rich source of lending case studies is expected to meaningfully enhance the Credit Coach platform. Moreover, with the acquisition of Omega Performance, Credit Coach will be able to provide an even broader range of credit and risk scenarios to the lending, and investment professionals.

Ari Lehavi, executive director of Learning Solutions at Moody’s Analytics said, “Omega Performance is widely recognized for its robust credit training capabilities, which complement the industry-leading learning solutions offered by Moody’s Analytics.”

Lehavi added, “This acquisition is an important development for financial institutions in search of a modern and comprehensive learning platform with a globally recognized credit certification to help elevate lending and risk management practices to compete and navigate more effectively in a rapidly evolving marketplace.”

While stiff competition across the credit rating industry continues to be a concern for Moody’s, it remains well positioned to boost profitability on the back of its dominant position in the industry, diverse revenue base and disintermediation of credit markets. Moreover, the company continues to invest in franchises and grow inorganically.

Moody’s shares have gained 17.4% so far this year against 16.1% decline recorded by the industry.





Currently, Moody’s carries a Zacks Rank #3 (Hold).

A few better-ranked stocks in the finance space are mentioned below:

SVB Financial Group’s (SIVB - Free Report) earnings estimates for 2018 have been revised upward by 7.5% over the past 30 days. Its shares have gained 79.4% in the past year. The stock currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Guaranty Bancorp (GBNK - Free Report) currently carries a Zacks Rank #2 (Buy). In the past 30 days, the Zacks Consensus Estimate for the company has remained stable for the current year. Its shares have gained 18.1% in the past year.

T. Rowe Price Group, Inc. (TROW - Free Report) also carries a Zacks Rank of 2. Its earnings estimates for 2018 have been revised upward by 2.2% over the past 30 days. Also, its shares have gained 43.5% in the past year.

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