Standard & Poor's Ratings Services on April 26 loweredits long-term issuer credit rating on Waddell & Reed Financial Inc. to BBB from BBB+ andaffirmed the A-2 short-term issuer credit rating.
The outlook is negative.
S&P said the downgrade reflects continued net outflows,causing assets under management to decline to $95.2 billion as of March 31,from $104.4 billion as of Dec. 31, 2015. While the company's investmentperformance has been adequate over the longer term, its short-term performancehas suffered, the rating agency said.
The negative outlook reflects the rating agency'sexpectation that outflows may continue in the next 18 to 24 months.
S&P Ratings andGlobal Market Intelligence are owned by McGraw Hill Financial Inc.