Moody's Corp.'s (MCO) second-quarter profit fell 19% as the credit ratings and research agency reported lower revenue amid limited new issuance for U.S. structured-finance products

But the company's results topped Wall Street's expectations, leading it to raise its full-year earnings target by 5 cents to $1.45 to $1.55. Moody's affirmed its revenue target.

Chairman and Chief Executive Raymond McDaniel said the latest results "reflect some improvement in credit market activity,"

Moody's and its rivals have come under criticism for their role in the financial crisis, especially over top ratings that were assigned to mortgage-backed securities that later caused massive losses for financial institutions. Last week, the Treasury Department unveiled details of an Obama administration plan to require increased disclosure and stronger oversight.

The company reported earnings of $109.3 million, or 46 cents a share, down from $135.2 million, or 54 cents a share, a year earlier. Both periods included a net 3 cents in gains. Revenue dropped 7.6% to $450.7 million.

Analysts polled by Thomson Reuters expected per-share earnings of 40 cents on revenue of $427 million.

U.S. and international revenue each declined 13%. International revenue accounted for 47% of Moody's total revenue, up from 46% a year earlier.

Ratings revenue fell 13% amid a 35% decline in global structured-finance revenue. U.S. structured-finance revenue slid 33%, driven by limited new issuance.

Shares closed at $27.62 on Tuesday and were inactive in premarket trading. The stock is up about a third this year.

-By John Kell, Dow Jones Newswires; 212-416-2480;

john.kell@dowjones.com