Standard & Poor's Ratings Services' ratings on iStar Financial Inc. (iStar) have been limited by iStar's concentration in cyclical commercial real estate (CRE) and the large size of its loans relative to capital. In 2009, iStar's risk profile has increased because of the growing number and value of troubled assets in its portfolio and because weakened capital markets have limited its funding flexibility. The alignment of iStar's high-risk strategy with its financial structure and operational capabilities has only partly offset the increased risks to its creditworthiness. iStar entered the credit crunch with an unencumbered balance sheet and capital levels that were strong relative to peers'. It has not been vulnerable to margin calls or the need to roll over short-term...
Companies mentioned in this report are:
- iStar Inc.
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