Why Moody’s Is Acquiring The ABS Suite Business From Deloitte

By Amit Chowdhry ● October 8, 2019
  • Moody’s announced recently that it is acquiring ABS Suite from Deloitte & Touche LLP. These are the details behind the deal.

Moody’s Corporation recently announced that it acquired ABS Suite from Deloitte & Touche LLP. ABS Suite is a software platform used by issuers and trustees for the administration of asset-backed and mortgage-backed securities programs. Through this acquisition, it will strengthen Moody’s Analytics’ position as a leading provider of structured finance solutions.

Essentially, ABS Suite is used to support a variety of securitized asset classes, including credit cards, mortgages, auto loans and leases, mobile-device payment plans, and equipment-related assets. And the platform’s global customer base includes five of the top eight credit card issuers, five of the top ten auto finance issuers, and many of the largest issuers of telecom and mortgage receivable securitizations.

“The acquisition of ABS Suite deepens Moody’s Analytics’ presence with issuers of securitized transactions,” said Moody’s Analytics president Mark Almeida. “Adding the expertise and experience of the ABS Suite team to our already formidable capabilities enables us to provide more and better solutions that improve funding decisions, increase operational efficiency and promote transparency and efficiency in the securitization financial markets.”

Going forward, the ABS Suite product and personnel will join Moody’s Analytics’ Structured Solutions business — which provides research, data, and analytical tools to participants on all sides of the market for structured finance transactions. And ABS Suite complements Moody’s Ki platform, a next-generation version of Moody’s ABS System.

Moody’s also recently announced it named Rob Fauber as Chief Operating Officer. Prior to this role, Fauber was the President of Moody’s Investors Service (MIS). Michael West is succeeding Fauber as President of MIS and Stephen Tulenko as President of Moody’s Analytics (MA).

Fauber will be responsible for both MIS and MA and also oversee Strategy and Marketing led by David Platt, Chief Strategy Officer for the Corporation. And Tulenko is succeeding Mark Almeida — who has served as president of MA since it was launched in 2008.

These three appointments will become effective on November 1, 2019.

The terms of this deal were undisclosed. And the deal will not have a material impact on Moody’s 2019 financial results. The transaction was funded with cash on hand.

Moody’s Corporation is the parent company of Moody’s Investors Service and Moody’s Analytics. Moody’s Investors Service provides credit ratings and research covering debt instruments and securities. And Moody’s Analytics offers leading-edge software, advisory services, and research for credit and economic analysis, and financial risk management. Last year, Moody’s reported revenue of $4.4 billion and the company employs approximately 13,200 people worldwide and maintains a presence in 44 countries.

Reed Smith had advised Moody’s on this deal. The Reed Smith team that worked on this transaction include New York-based partners Chris Sheaffer and Peter Emmi, and associates Anatoliy Rozental, Lowell Bourgeois, Sophie Ha, Stacy Lee.