KBRA Places Issuer Rating of Janney Montgomery Scott LLC on Watch Developing

KBRA places the issuer rating of A+ for Philadelphia-based Janney Montgomery Scott LLC (“Janney”) on Watch Developing following the recent announcement by KKR, a leading global investment firm, and The Penn Mutual Life Insurance Company (“Penn Mutual”) of a definitive agreement under which investment funds managed by KKR will acquire Janney from Penn Mutual.

Key Credit Considerations

Janney’s issuer rating is supported by the firm’s experienced management team, long history of profitable operations, conservative risk appetite, low-risk business mix, and 100% ownership since 1982 by Penn Mutual (KBRA IFSR: AA/ Stable Outlook). Janney has a comparatively lower-risk business model with a focus on wealth management. Janney’s management team has deep industry experience and a favorable financial track record. Janney’s risk appetite is considered by KBRA to be conservative with prudent risk management practices. Following the close of the transaction, currently expected in 4Q24, Janney will become a standalone private company that will continue to operate independently. KKR will make its investment in Janney primarily through its North America Fund XIII.

Rating Sensitivities

A change in Janney's rating is not expected in the near-term. Given the acquisition announcement, the rating for Janney is contingent upon the successful execution of the transaction with KKR. We expect to resolve the Watch Developing status for Janney's rating at the time of the transaction close. Should the merger not close as planned, KBRA will revisit Janney's rating.

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Methodologies