Moody's on June 4 downgraded Franklin Resources Inc.'s senior unsecured rating to A2 from A1 and revised the outlook to stable from negative.
Moody's also downgraded Franklin Resources' senior unsecured shelf rating to (P)A2 from (P)A1, subordinate shelf rating to (P)A3 from (P)A2, junior subordinate shelf rating to (P)A3 from (P)A2, and preferred shelf rating to (P)Baa1 from (P)A3.
In addition, the rating agency affirmed Franklin Resources' commercial paper rating at P-1.
The downgrade, according to the rating agency, reflects Franklin Resources' "struggles over the past several years with market and stylistic challenges in areas of its core asset management expertise such as global fixed income and value equity investing."
