Standard & Poor's stopped short of downgrading Janus [profile], but the ratings agency's analysts are still worried.

Yesterday S&P revised its outlook on the Denver-based mutual fund shop to negative, from stable, while keeping Janus' long-term issuer credit rating at BBB-. S&P estimates "a one-third probability that Janus' net asset outflows and negative performance fees could seriously hamper the company's financial performance in 2013 — possibly warranting a downgrade."

In the revision, S&P worries about Janus' weakening profitability, continued net equities outflows (with equities still making up 82 percent Janus' $158B of assets under management as of September 30), and lagging long-term performance, which in turn pushed performance fees for the first nine months of 2012 down to negative $61.8 million. 

Edited by: Neil Anderson, Managing Editor


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