Standard & Poor's Ratings Services' ratings on iStar Financial Inc. (iStar) are based on a well-executed competitive strategy that mitigates the effects of a CRE downturn, strong and consistent earnings, an unencumbered balance sheet, and improved diversification across business lines. Risks include exposure to credit quality deterioration in CRE lending (credit risk), concentration in an asset class that has been prone to cyclicality (market risk), large investments, and capital constraints attending its REIT structure. iStar's credit metrics will remain unsteady through 2008 while it manages through two developments: first, its July 2007 acquisition of Fremont General Corp.; and second, two of the more aggressive investments that were classified as nonperforming in second-quarter 2007. In addition, the company has made large...
Companies mentioned in this report are:
- iStar Inc.
- Real Industry Inc.
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