Moody's Corp. (MCO) reported a better-than-expected 11% decline in third-quarter profit on a surprise climb in revenue.

The credit-ratings and research agency raised its full-year earnings guidance again, this time to $1.60 to $1.68 a share from $1.55.

A steady stream of new debt issuance has reinvigorated the bond market--and the market to rate debt. Monday, McGraw-Hill Cos. (MHP), owner of rival agency S&P, saw that unit improve as corporate debt issuance offset declines in the structured-finance market.

Still, a shadow remains over Moody's and other ratings firms, as lawmakers in the U.S. and elsewhere examine stricter regulation because of criticism that the agencies' shoddy ratings contributed to the financial crisis. Wednesday, a key U.S. House panel approved a bill that would impose more regulations and make it easier for investors to win lawsuits.

Chairman and Chief Executive Raymond McDaniel on Thursday credited the strong results to continuing strength in corporate debt issuance as well as growth from Moody's Analytics.

Moody's posted a profit of $100.6 million, or 42 cents a share, from $113 million, or 46 cents a share, a year earlier. Both latest and the prior-year results included restructuring charges, while previous year also included a tax benefit. Excluding those items, earnings fell to 43 cents from 45 cents.

Revenue increased 4.2% to $451.8 million.

Analysts polled by Thomson Reuters predicted earnings of 38 cents on $417 million in revenue.

U.S. revenue rose 5.2%. International revenue was up 3.3% and accounted for 49.2% of Moody's total revenue, slipping slightly from 49.6% a year earlier.

Ratings revenue climbed 3%, or 5% excluding foreign-exchange impacts, as corporate-finance revenue rose 32%, driven by better activity in the high-yield market in the U.S. and issuance of investment-grade securities in Europe. Structured-finance revenue slid 17%.

Shares in Moody's closed Wednesday at $24.62 and weren't active premarket. The stock, which hit an 7-year low in November, has risen 23% in 2009.

-By Joan E. Solsman, Dow Jones Newswires; 212-416-2291; joan.solsman@dowjones.com