KBRA Affirms Issuer Rating for Janney Montgomery Scott LLC
8 Dec 2023 | New York
KBRA affirms the issuer rating of A+ for Philadelphia-based Janney Montgomery Scott LLC (“Janney” or “the firm”). The rating Outlook is Stable.
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 The Penn Mutual Life Insurance Company (“Penn Mutual”). 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. KBRA believes that Janney is strategically important to Penn Mutual and that Penn Mutual would support Janney in the unlikely event of need. On November 3, 2023, KBRA affirmed the IFSR of AA for Penn Mutual with a Stable Outlook.
Rating Sensitivities
A rating upgrade over the next one- to two-year time frame is not expected, given the Stable Outlook of both Janney and its parent, Penn Mutual. Any improvement in the already strong credit profile and rating of the parent could benefit Janney’s rating. Any meaningful deterioration in financial performance, particularly at the parent, Penn Mutual, could negatively affect the rating.
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