S&P: Janus up to positive

Standard & Poor's said that it has revised its outlook on Janus Capital Group Inc. to positive from negative.

At the same time, the agency said it affirmed its BBB-/A-3 long- and short-term ratings on the company.

"The outlook revision on Denver-based Janus Capital Group Inc. reflects the recent improvements in the company's financial risk profile," said credit analyst Olga Roman.

Despite continued asset outflows and negative performance fees, Janus increased its revenue by about 9% year-over-year and improved its profitability during 2014, the agency said.

S&P rates Lufthansa hybrid BB

Standard & Poor’s said it assigned its BB long-term issue rating to the proposed long-dated, optionally deferrable and subordinated hybrid capital securities to be issued by Deutsche Lufthansa AG (BBB-/stable/A-3).

Under this transaction, Lufthansa plans to issue euro-denominated hybrid instruments. The

amount remains subject to market conditions.

The agency said it considers the proposed securities to have "intermediate" equity content until their respective first call dates because they meet its criteria in terms of subordination, permanence and deferability at the company's discretion during this period.

S&P said it arrived at its BB issue rating on the proposed securities by notching down from its BBB- corporate credit rating.

S&P cuts Seadrill to negative

Standard & Poor’s said it revised to negative from stable its outlook on Seadrill Partners LLC and its subsidiary, Seadrill Capricorn Holdings LLC.

At the same time, the agency said it affirmed its BB-/B corporate credit ratings.

According to S&P, the outlook revision reflects its view that funding needs in 2015 for debt maturities and new vessels at Seadrill Ltd. could have implications for Seadrill Partners, in which Seadrill Ltd. has material and strategic interests.

In its view, S&P said Seadrill Partners may pay increased distributions to its shareholders and Seadrill Ltd. could finance further sales to Seadrill Partners of an interest in one of its vessels (vessel drop downs) by increasing debt at Seadrill Partners.

The ratings on Seadrill Partners reflect its assessment of the company's business risk profile as "fair" and its financial risk profile as "significant."

Moody's upgrades Michelin

Moody's Investors Service said it upgraded Compagnie Generale des Etablissements Michelin SCA’s long-term issuer and senior debt ratings to A3 from Baa1. The outlook is stable.

The agency said the rating action was prompted by the consistently strong operational performance Michelin has achieved over the last five years, management's solid financial policy and Moody's expectation that Michelin's ongoing restructuring plan, which the company recently accelerated, will assist to further strengthen key credit metrics. Leverage has fallen to 2 times in 2014 from 2.4 times in 2010.

Michelin's rating reflects the group's strong competitive position – reflecting its scale, the strength of its brand name and its position as one of the three leading global tire manufacturers – and its solid financial metrics, Moody’s said.

However, Michelin's profitability is challenged by pricing pressure, the agency said, and the rating considers Michelin's challenge to generate positive free cash flows while balancing shareholder interest in dividend payments and investment needs for expanding its global footprint and defending its technological advantage.

Fitch rates National Australia Bank notes A+

Fitch Ratings said it assigned an expected rating of A+ to National Australia Bank Ltd.'s A$1.1 billion Basel-III compliant tier 2 instrument due 2025 to be offered to domestic and international institutional investors.

The agency said the rating reflects the instrument’s below-average recovery prospects compared to the bank’s senior unsecured instruments.

S&P rates Swiss Re notes A

Standard & Poor’s said it assigned its A long-term issue rating to the proposed junior subordinated perpetual fixed-to-floating callable notes to be issued by Swiss Reinsurance Co. Ltd. (AA-/stable/A-1+).

The rating on the notes is subject to confirmation.

The rating is two notches below its counterparty credit rating on Swiss Re, reflecting its standard notching for deferrable subordinated debt issues, the agency said.

S&P noted that it understands that the notes include a step-up of 100 basis points to the spread if a call is not exercised at the first call date.

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