Moody's, S&P downgrade Nuveen

Investment manager Nuveen Investments Inc. was downgraded again yesterday by both Standard & Poor’s and Moody’s Investors Service, with Moody’s being the more pessimistic.

The continuing reduction in assets under management prompted Moody’s to lower the corporate rating by two grades to Caa1 and the senior unsecured notes to Caa3.

S&P took the grade down only one step to B-.

Nuveen had $119 billion of assets under management at Dec. 31 compared with $134 billion on Sept. 30. The reduction results from both the decline in prices and client withdrawals.

S&P and Moody’s had downgraded Nuveen in November and December.

The Chicago-based money manager was acquired in November 2007 by Madison Dearborn Partners LLC in a $5.5 billion transaction.