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These, together with the Safe Harbor statement set forth important factors that could cause actual results to differ materially from those contained in any such forward-looking statements. I should point out that members of the media may be on the call this morning in a listen-only mode.I'll now turn the call over to Ray McDaniel. Ray McDaniel Thanks, Liz. Good morning and thank you to everyone for joining today's call. I'll begin our remarks this morning by summarizing Moody's second quarter and year-to-date 2010 results. Linda will follow with additional financial detail and operating highlights. I'll then speak to recent developments in the legislative and regulatory area and finish with comments on Moody's outlook for 2010. After our prepared remarks we'd be happy to respond to your questions. Moody’s results for the second quarter were strong given the greater volatility in debt capital markets as compared to the first quarter. Total revenue was $478 million, up 6% from the second quarter of 2009, was largely driven by the resurgence of US-based bank loan activity for refinancing and LBO transactions, plus growth across Moody’s Analytics. Operating income for the second quarter was $191 million, an increase of 2% year-over-year. Diluted earnings per share for the quarter were $0.51, 11% above the $0.46 in the prior year period. Excluding legacy tax and restructuring items in both years, diluted EPS for the quarter of $0.49 grew by 14% year-over-year. Turning to year-to-date performance, revenue for the first six months of 2010 was $954 million, 11% increase from the first half of 2009. Expenses were $567 million, up 8% from the prior year period, and operating income of $387 million increased 15%. Revenue at Moody’s Investors Service in the first six months of 2010 was $664 million, an increase of 14% from the prior year period. Moody’s Analytics revenue of $290 million was 4% higher than the prior year period. We’re reaffirming our full-year 2010 EPS guidance of $1.75 to $1.85 based on the sound first-half performance, but we expect the uneven credit market conditions will persist during the second half.
I will now turn the call over to Linda to provide further commentary on our results and other updates.Linda Huber Thanks, Ray. I’ll begin with revenue at the corporate level. As Ray mentioned Moody’s total revenue for the quarter was up 6% year-over-year. The impact of foreign currency translation on revenue was negligible. For the second quarter, US revenue increased 10% to $262 million; while revenue outside the US increased 1% to $215 million, representing 45% of Moody’s total revenue. Recurring revenue of $284 million represented 59% of total revenue compared to 61% in the prior year period. Looking at each of our businesses, Moody’s Investors Service revenue for the quarter was $329 million, a 6% increase year-over-year. US revenue was up 12% over the prior year period; outside the US revenue declined 2% and represented 41% of total ratings revenue. Global corporate finance revenue in the second quarter increased 19% from a year ago to $128 million. Revenue grew 30% in the US, primarily driven by strong activity and high yield bank loans, which more than offset reduced issuance of investment grade bonds. Outside the US, revenue increased 1% from the prior year period, with strong issuance in Asia and Latin America, mostly offset by limited activity in Europe and Canada. Global structured finance revenue for the second quarter was $73 million, 2% below the prior year period. Read the rest of this transcript for free on seekingalpha.com