Moody’s upgrades Janus Henderson outlook to positive on improved flows

Published 28/08/2025, 19:26
© Reuters.

Investing.com -- Moody’s Ratings has affirmed Janus Henderson Group Plc’s Baa2 long-term issuer rating while changing the outlook to positive from stable, the ratings agency announced Thursday.

The improved outlook reflects expectations that enhancements in Janus Henderson’s business profile are structural and sustainable, supported by net inflows over recent quarters and reduced dependence on active equity strategies.

Moody’s also affirmed the Baa2 backed senior unsecured debt ratings of Janus Henderson US (Holdings) Inc.

The group has recorded five consecutive quarters of positive net flows through Q2 2025, primarily driven by its US intermediary business and improving institutional flows. A strategic partnership with Guardian Life Insurance Company of America brought in $46.5 billion of inflows as Janus Henderson took over management of Guardian’s investment-grade public fixed income portfolio.

Following this partnership, Janus Henderson’s assets under management reached an all-time high of $457 billion in Q2 2025. The company has expanded its product offerings to include active ETFs, tokenized treasury funds, and a broader alternatives franchise, which have improved diversification and generated inflows in fixed income and alternatives segments.

Despite these positive developments, the asset manager continues to face industry-wide challenges in its active equity strategies, which remain in net outflow. Profitability currently sits below historical levels due to lower average AUM, though Moody’s expects gradual improvement.

The rating agency highlighted Janus Henderson’s financial strength, noting its Moody’s-adjusted debt/EBITDA ratio consistently remains below 1.0x. With $400 million of debt maturing in 2034 and $900 million in cash and cash equivalents, the company maintains a net cash position.

Factors that could lead to a rating upgrade include sustained positive organic AUM growth exceeding 2.5% annually, maintaining debt/EBITDA under 1.0x, and pre-tax income margin consistently above 30%.

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