Is MCO (Moody's Corporation) Halal or Haram?

Based on our AAOIFI-standard shariah screening, MCO is Not Halal (Haram) and is not considered permissible for Muslim investors. It failed 1 of 4 compliance screens. Moody's Corporation's core business activity was found to be non-compliant.

Moody's Corporation is a leading global integrated risk assessment firm, operating primarily through Moody's Investors Service and Moody's Analytics. The company is best known for publishing credit ratings and providing assessment services on various corporate, financial institution, and governmental debt obligations across approximately 140 countries. For Muslim investors, Moody's Corporation is classified as Not Halal (Haram) under AAOIFI standards. Although the company easily passes all financial ratio screens, it fundamentally fails the business activity screen because its primary revenue is derived from servicing and facilitating the conventional, interest-based debt markets. From a purely financial perspective, Moody's exhibits a highly conservative balance sheet, with debt to market cap at a low 9.1% and cash and securities at 3.0%. Furthermore, its direct interest-earning activities are minimal, contributing only 0.84% to total revenue, well below the 5% threshold permitted by AAOIFI. Because the core business model is inextricably linked to conventional debt issuance and credit ratings, there is little room for scholarly debate regarding its non-compliant status. Halal investors must avoid this stock and instead seek opportunities in sectors disconnected from riba-based financial infrastructure. Moody's Corporation operates in the Financial Services sector under the Financial - Data & Stock Exchanges industry and is headquartered in New York City, NY, US. The company is led by CEO Robert Scott Fauber and employs approximately 15,795 people.

MCO was screened using AAOIFI-based shariah compliance criteria. Four tests are applied: (1) Business Activity — the company's core business must not derive primary income from haram (prohibited) activities such as alcohol, gambling, tobacco, or interest-based finance. (2) Debt-to-Market-Cap — total debt must not exceed 33% of market capitalization. (3) Interest Income — interest income must not exceed 5% of total revenue. (4) Cash & Securities — cash and interest-bearing securities must not exceed 33% of market cap. MCO passed 3 of these 4 screens.

MCO was last screened on 2026-04-29. Shariah compliance status can change as companies report new financial data, acquire new businesses, or shift revenue streams. We recommend checking back periodically for the most up-to-date screening results.