In the U.S., MA revenue of $86.3 million for the third quarter of 2012 increased 14% from the prior-year period. Outside the U.S., revenue of $128.7 million grew 23% as compared with the same quarter of 2011.

THIRD QUARTER EXPENSES

Third quarter 2012 expenses for Moody’s Corporation were $418.8 million, 25% higher than in the prior-year period, primarily due to higher accruals for incentive compensation and Moody’s profit sharing plan, as well as increased headcount both from growth in our existing business and from acquisitions in late 2011. Excluding the impact of foreign currency translation, expenses grew 27 percent. Moody’s reported operating margin for the third quarter of 2012 was 39.2%, up from 36.9% in the third quarter of 2011. Adjusted operating margin was 42.7% for the third quarter of 2012, up from 40.5% for the same period last year.

Moody’s effective tax rate was 29.5% for the third quarter of 2012, compared with 28.5% for the prior-year period. The increase in the effective tax rate was primarily due to lower taxes in 2011 resulting from the settlement of state tax audits, partially offset by the favorable impact of foreign tax planning initiatives in 2012.

YEAR-TO-DATE RESULTS

Moody’s Corporation revenue for the first nine months of 2012 totaled $1,976.1 million, an increase of 15% from $1,713.6 million for the same period of 2011. Excluding the impact of foreign currency translation, revenue growth was 18 percent. Revenue at Moody’s Investors Service totaled $1,367.4 million for the first nine months of 2012, an increase of 14% from the same period in 2011. Moody’s Analytics revenue rose 19% from the first nine months of 2011 to $608.7 million.

Expenses for the first nine months of 2012 totaled $1,158.9 million, 16% higher than a year ago. Excluding the impact of foreign currency translation, expense growth was 18 percent. Year-to-date operating income of $817.2 million grew 14% from $716.3 million for the same period of 2011. Excluding the impact of foreign currency translation, operating income grew 17 percent. Diluted earnings per share of $2.34 for the first nine months of 2012, which included a $0.06 legacy tax benefit, increased 14% from $2.06 in the first nine months of 2011. Excluding legacy tax benefits in both periods, diluted earnings per share of $2.28 for the first nine months of 2012 grew 12% from $2.03 for the same period in 2011.

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