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I would also like to 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 Thank you, Salli. Good morning and thank you to everyone for joining today’s call. I’ll begin by summarizing Moody’s first quarter 2012 results. Linda will follow with additional financial detail and operating highlights and I’ll then speak to recent regulatory developments and finish with comments on our outlook for 2012. After our prepared remarks, we’ll be happy to respond to your questions. First quarter revenue of $647 million increased 12% over the prior year period primarily reflecting increased corporate and public project and infrastructure debt issuance as well as continued solid performance from Moody’s Analytics. All reporting units of both Moody’s Investor Service and Moody’s Analytics grew in the first quarter of 2012 compared to the prior year period. Operating income for the first quarter was $269 million, an 8% increased from the prior-year period. Diluted earnings per share for the quarter of $0.76 increased 13% year-over-year. While the level of issuance activity was strong in first quarter, we remain cautious about market conditions for the remainder of the year. As a result we are reaffirming our 2012 EPS guidance of $2.62 to $2.72, but now expect to be toward the upper end of the range. 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 company level. As Ray mentioned, Moody’s total revenue for the quarter increased 12% to $647 million. The US first quarter revenue increased 14% to $344 million while revenue outside the US grew 10% to $303 million and represented 47% of Moody’s total revenue, down slightly from the 48% in the year-ago period. Recurring revenue of $330 million represented 51% of the total, essentially flat to the prior year period.
Now looking at each of our businesses starting with Moody’s Investor Service, revenue for the quarter was $453 million, a 10% increase year-over-year. Foreign currency translation unfavorably impacted Moody’s Investor Service revenue by $4 million. US revenue for MIS increased 13% over the prior year period, while revenue outside the US increased 6% and represented 43% of total ratings revenue.Global corporate finance revenue in the first quarter increased 10% from the year-ago period to $201 million. Revenue grew 8% in the US while outside the US revenue increased 15% year-over-year. The growth in global corporate finance revenue reflected stronger investment grade and solid speculative grade bond issuance activity. Global structured finance revenue for the first quarter was $94 million, 5% above the prior-year period. In the US revenue increased 15% year-over-year primarily due to strength asset backed securities and commercial real estate. Most other areas of the US structured finance market remained weak. International structured finance revenue was down 2% reflecting weaker issuance volumes in European asset-backed securities in the first quarter of 2012 as well as demand in the first quarter of 2011 for ratings of outstanding securitization placed with the European Government sponsored facility. Global financial institutions revenue of $79 million increased 2% from the same quarter of 2011. US revenue was essentially flat as compared to the first quarter of 2011 while non-US revenue grew 4%. Global revenue for the public project and infrastructure business rose 23% year-over-year to $79 million. Revenue was up 37% in the US reflecting strength in both public finance and project finance. Read the rest of this transcript for free on seekingalpha.com