S&P Upgrades Ladder Capital’s Credit Rating to 'BB+'
Event summary
- S&P Global Ratings upgraded Ladder Capital Corp’s credit rating to 'BB+' from 'BB' with a stable outlook.
- The upgrade was driven by improved leverage profile, strong business diversification, ample liquidity, and an unsecured capital structure.
- Ladder is the only investment-grade-rated mortgage REIT, holding Baa3 (Moody's) and BBB- (Fitch) ratings.
- The company has deployed over $49 billion in capital since its founding in 2008.
The big picture
Ladder Capital’s credit rating upgrade reflects its disciplined approach to managing leverage and maintaining liquidity, positioning it favorably in the commercial real estate finance sector. The company’s strong business diversification and unsecured capital structure set it apart, enabling it to mitigate risks while delivering attractive returns. This upgrade underscores Ladder’s ability to navigate market dynamics effectively.
What we're watching
- Investment Grade Ambitions
- Whether Ladder can secure investment-grade ratings from all three major rating agencies.
- Capital Deployment
- How the upgraded rating will influence Ladder’s ability to deploy capital efficiently.
- Market Positioning
- The strategic advantage of being the only mortgage REIT with a largely unsecured capital structure.