On March 2, 2009, Standard & Poor's Ratings Services lowered its ratings on New York–based iStar Financial Inc., including lowering the counterparty credit rating to 'BB' from 'BBB-'. The outlook is negative. The two-notch downgrade reflects continued growth in the number and value of troubled assets in its portfolio, coupled with the likelihood that loan repayments will slow and recovery values for its commercial real estate assets will deteriorate. These negative factors are only partially offset by the company's announcement that it is likely to receive additional funding and covenant relief from a new secured credit facility. The firm's troubled assets--defined as the sum of nonperforming assets, watch list assets, and foreclosed real estate--increased by about a billion dollars, to...
Companies mentioned in this report are:
- iStar Inc.
Action: Outlook: Negative
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