Standard & Poor's Ratings Services
lowered its credit rating on Janus Capital Group
a notch to junk status,
The Wall Street Journal
reports. S&P said the Denver fund firm's weakened debt servicing capacity
is not expected to improve in the near term.
"Janus has been harder hit than most other rated asset managers during the global plunge in stock prices, because it is primarily an equity shop," the Journal quotes
S&P analyst Charles D. Rauch as saying.
Janus ended 2008 with AUM of $123.5 billion, down 40 percent from a year ago.
S&P also said the firm's liquidity declined "materially" in 2008.
Sought for comment, Janus spokesperson James Aber said the downgrade was "not unexpected given the market deterioration over the last several months."
He added: "We continue to believe the company's financials are sound and the long-term business fundamentals remain intact."
"Our current asset levels, cash on our balance sheet and expected cash flow from operations can service debt for several years," Aber added.
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