Standard & Poor’s Ratings Services upgraded Janus Capital Group to investment-grade territory, saying the asset-management firm is in “a stronger financial position than a year ago.”
The ratings service boosted Janus to BBB-, the rung above junk level, from its previous BB+ rating, citing the company’s deleveraging of its balance sheet. S&P also noted that it expects the company to keep debt at current levels and to continue pursuing “a conservative fiscal posture.”
“The upgrade reflects our opinion that Janus has made substantial progress during the past 18 months to deleverage its balance sheet,” said S&P credit analyst Charles Rauch.
Janus has seen results improve of late as it has reported continued growth of assets under management and investment fees. S&P noted that “the growth in AUM (assets under management) during the latter part of 2010 bodes well for modest revenue growth in 2011.”
In October, Janus said its third-quarter earnings nearly quadrupled as assets under management and revenue jumped from a year earlier.
Janus shares rose 8 cents Monday to close at $13.15. The stock has fallen 8.1 percent in the past year.
