UPDATE 1-Moody's profit rises 31 pct on higher debt issues
* Second-quarter EPS $1.00/shr vs est $0.91
* Total revenue increases 18 pct
* Corporate finance revenue up 37 pct
* Co hikes annual dividend by 25 pct to $1.00/shr
July 24 (Reuters) - Credit rating agency Moody's Corp posted a higher-than-expected 31 percent jump in quarterly profit as companies issued more bonds.
Total revenue increased 18 percent to $756.0 million in the second quarter, while total expenses rose about 12 percent to $405.2 million.
Net income attributable to Moody's rose to $225.5 million, or $1.00 per share, from $172.5 million, or 76 cents per share, a year earlier.
Analysts had expected earnings of 91 cents per share on a revenue of $722.3 million, according to Thomson Reuters I/B/E/S.
Moody's raised its annual dividend by 25 percent to $1.00 per share and said it will buy back $1 billion shares in 2013.
Revenue at Moody's analytics division, which sells financial research, data and software for assessing risk, increased 10 percent to $218.7 million, while revenue at its corporate finance division rose 37 percent to $262.9 million.
Companies that issue bonds pay Moody's to rate their debt to help investors determine the likelihood of default.
The company reiterated its full-year adjusted earnings forecast of $3.49 to $3.59 per share. Analysts were expecting $3.57 per share.
Moody's shares, which have risen about 24 percent since the beginning of the year, closed at $62.31 on Tuesday on the New York Stock Exchange.