Moodys (MCO) risk factors, FY2025 10-K

Moodys's FY2025 10-K, filed Feb 18, 2026, lists 18 risk factors. Against the prior year's 18: 2 new, 2 dropped, 8 substantially reworded.

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Risk factors listed
180 groups
New this year
2vs 18 last year
Dropped
2since the prior 10-K
Substantially reworded
8of those kept
Section length
11k wordsItem 1A

What the changes say

  • New sustainability risks include anti-ESG backlash, failure to meet commitments, and climate-related operational and regulatory costs.
  • Infrastructure risk now specifically includes India and expanded Middle East conflict exposure.
  • Reputation risk now covers cyberattacks, third-party breaches, data and AI output accuracy, and MIS’s climate-sensitive ratings.
  • International operations risk emphasizes India-Pakistan tensions, Russia-Ukraine, and Middle East conflicts.

What changed since the prior 10-K

New

  • New

    actual or perceived failure to achieve our sustainability-related initiatives, goals or commitments could negatively impact our reputation or otherwise materially harm our business

    Anti-ESG activists, institutions, and governments could challenge Moody’s sustainability disclosures and commitments, causing scrutiny, lawsuits, reputational damage, or business harm.

  • New

    Our business could be negatively impacted by physical and transitional climate risks

    Extreme weather could disrupt Moody’s offices, energy supplies, vendors, customers, and infrastructure, while climate policies and regulations could increase costs.

Dropped

  • Dropped

    sabotage, intentional acts of vandalism, acts of terrorism, political unrest, pandemic, war or otherwise, may impair the Company’s ability to deliver its products and services

  • Dropped

    Our business could be negatively impacted by climate change

Reworded

  • 75% rewritten

    Moody’s Operations are Exposed to Risks from Infrastructure Malfunctions or Failures

    Adds India as a major employee-population location and expands conflict exposure to multiple Middle East conflicts.

  • 61% rewritten

    Our Reputation or Business Could Be Negatively Impacted by Sustainability Matters and Our Reporting of Such Matters

    Adds failure to complete initiatives and says MIS’s climate-related ratings could trigger reputational risk, regulatory action, or litigation.

    Was: Our reputation or business could be negatively impacted by ESG matters and our reporting of such matters

  • 33% rewritten

    The Company is Exposed to Legal, Economic, Operational and Regulatory Risks of Operating in Multiple Jurisdictions

    Replaces specific Latin America, China, and Middle East examples with global uncertainty and adds India-Pakistan, Russia-Ukraine, and Middle East conflicts.

  • 28% rewritten

    Moody's Analytics. Certain of MA’s subscription products contain credit ratings data and related research produced by MIS, and often are used by MA customers for regulatory compliance purposes, including determination of capital charges and regulatory reporting

    Makes a grammatical clarification that future laws and regulations may affect Moody’s Analytics products and services.

  • 27% rewritten

    The Company Faces Exposure to Litigation and Government Regulatory Proceedings, Investigations and Inquiries (Including Competition Market Studies) Related to Rating Opinions, Analytics Services and Other Business Practices

    No substantive change; the litigation, investigation, and ratings-related claims exposure remains materially the same.

    Was: The Company Faces Exposure to Litigation and Government Regulatory Proceedings, Investigations and Inquiries (Including Competition Market Studies) Related to Rating Opinions and Other Business Practices

  • 26% rewritten

    The Company Is Exposed to Reputation and Credibility Concerns

    Adds security breaches, cyberattacks, third-party service-provider incidents, and accuracy and timeliness concerns involving data, analytics, AI models, and outputs.

  • 26% rewritten

    The Introduction of Competing Products, Technologies or Services by Other Companies Can Negatively Impact the Nature and Economics of the Company’s Business

    Removes the prior statement that innovative products must be developed and maintained in a timely and cost-effective manner.

  • 23% rewritten

    The Company Is Exposed to Risks Related to Protection of Confidential and Personal Information

    Adds data-localization laws requiring information to remain within the countries imposing those laws.

All 18 risk factors

Headings as the filing states them, in filing order.

Other

  1. 01Moody’s Faces Risks Related to Laws and Regulations that Affect the Financial Industry, Including the Credit Rating Industry, Moody's Businesses and Moody’s Customers
  2. 02Moody's Analytics. Certain of MA’s subscription products contain credit ratings data and related research produced by MIS, and often are used by MA customers for regulatory compliance purposes, including determination of capital charges and regulatory reporting28% rewritten
  3. 03The Company Faces Exposure to Litigation and Government Regulatory Proceedings, Investigations and Inquiries (Including Competition Market Studies) Related to Rating Opinions, Analytics Services and Other Business Practices27% rewritten
  4. 04The Company Is Exposed to Risks Related to Its Compliance and Risk Management Programs
  5. 05Moody’s Faces Risks Related to Intellectual Property Rights
  6. 06Moody’s Faces Risks Related to Tax Matters, Including Changes in Tax Rates or Tax Rules
  7. 07The Company is Exposed to Legal, Economic, Operational and Regulatory Risks of Operating in Multiple Jurisdictions33% rewritten
  8. 08Moody’s Operations are Exposed to Risks from Infrastructure Malfunctions or Failures75% rewritten
  9. 09The Introduction of Competing Products, Technologies or Services by Other Companies Can Negatively Impact the Nature and Economics of the Company’s Business26% rewritten
  10. 10The Company Faces Increased Pricing Pressure from Competitors and/or Customers
  11. 11The Company Is Exposed to Reputation and Credibility Concerns26% rewritten
  12. 12Our Reputation or Business Could Be Negatively Impacted by Sustainability Matters and Our Reporting of Such Matters61% rewritten
  13. 13actual or perceived failure to achieve our sustainability-related initiatives, goals or commitments could negatively impact our reputation or otherwise materially harm our businessNew
  14. 14Moody’s Is Exposed to Risks Related to Loss of Skilled Employees and Related Compensation Cost Pressures
  15. 15Moody’s Acquisitions, Dispositions and Other Strategic Transactions, Partnerships or Investments May Not Produce Anticipated Results Exposing the Company to Future Significant Impairment Charges Relating to Its Goodwill, Intangible Assets or Property and Equipment
  16. 16Our business could be negatively impacted by physical and transitional climate risksNew
  17. 17The Company Is Exposed to Risks Related to Cybersecurity and Protection of Confidential Information
  18. 18The Company Is Exposed to Risks Related to Protection of Confidential and Personal Information23% rewritten

Other Moodys 10-Ks

  • FY2024 10-K risk factors
    18 risks

    Moody's faces intense regulatory scrutiny regarding credit ratings and data dissemination. Competition from Gen AI and traditional firms threatens pricing and market share. Operations rely heavily on cybersecurity and cross-border data protection compliance.

    Filed Feb 14, 2025

About this page

The headings are the filing's own. The one-line readings and the overview are automated and can be wrong: read Item 1A of the 10-K for the exact wording.