Moody’s Corporation has announced plans to acquire a majority equity stake in the Middle East Rating & Investors Service (MERIS), a leading domestic credit rating agency in Egypt. The move strengthens a partnership that has lasted for more than two decades and underscores Moody’s commitment to supporting the development of local capital markets across the Middle East and Africa.
Strengthening Longstanding Ties
The transaction builds on the history between the two institutions. MERIS was established in 2003 as a joint venture between Moody’s and FinBi, a local Egyptian consulting firm. Over the past two decades, it has become a pioneer in Egypt’s domestic capital markets, providing national scale credit ratings across a broad spectrum of industries, including financial institutions, corporates, and structured finance transactions.
“We are excited to strengthen our relationship with MERIS, which has been an important provider of domestic credit ratings in Egypt for over two decades,” said Monica Merli, Chief Operating Officer of Moody’s Ratings. “We look forward to further sharing Moody’s global best practices with MERIS as its experienced team and trusted local insights continue to serve market participants in Egypt.”
Supporting Egypt’s Capital Market Growth
For Moody’s, the acquisition is more than just an equity deal; it reflects a strategic ambition to contribute to the expansion and resilience of local financial markets. Egypt, with its rapidly developing capital market infrastructure, offers significant opportunities for enhanced credit transparency and investor confidence. By leveraging Moody’s global expertise and combining it with MERIS’s strong local presence, the transaction aims to strengthen Egypt’s financial system.
Dr. Amr Hassanein, Managing Director and Founder of MERIS, highlighted the significance of the announcement: “Today marks an important milestone in MERIS’s history. By deepening our association with Moody’s global network and leveraging its expertise alongside our established local presence, we can further enhance our offerings and contribute to the continued growth and development of Egypt’s financial markets.”
Independent Operations Maintained
Despite Moody’s majority stake, MERIS will continue to operate as an independent affiliate. The agency will retain its own management team, develop its own rating methodologies, and issue its own credit ratings. This arrangement ensures that MERIS preserves its local expertise and independence while benefitting from Moody’s international reach, reputation, and resources.
The transaction, which is subject to regulatory approvals, is expected to provide market participants in Egypt with greater confidence in the robustness of local ratings, while also facilitating the integration of Egypt’s capital markets into the broader global financial system.
Broader Global Context
For Moody’s, the acquisition is part of a wider effort to expand its influence in emerging markets and to play a role in strengthening financial ecosystems worldwide. With a workforce of approximately 16,000 across more than 40 countries, Moody’s brings decades of experience and innovative technologies to the table, helping institutions, governments, and investors manage risks and seize opportunities.
By aligning global standards with local market needs, the company hopes to foster greater transparency and attract both domestic and international investment flows.
Conclusion
The acquisition of a majority stake in MERIS represents a strategic expansion for Moody’s in the Middle East and Africa while reinforcing Egypt’s efforts to build a more resilient and transparent financial system. As Egypt’s capital markets continue to grow, the partnership between Moody’s and MERIS is set to play a critical role in providing reliable credit assessments, enhancing investor confidence, and supporting long-term economic development.
