Summary: iStar Financial Inc. Apr 07
- ID: 2086492
- April 2007
- Standard & Poors
The ratings on iStar Financial Inc. (iStar) are based on the firm's strong and consistent earnings, a well-executed competitive strategy that should mitigate the effects of a frothy commercial real estate market, its unencumbered balance sheet, and improved diversification across business lines. Risks that iStar faces include concentration in an asset class that has been prone to cyclicality, large investments, and capital constraints attending its REIT structure. Concerns around the company's high credit risk profile are mitigated by its excellent credit loss history. Profitability, as measured by pretax margin, ROAA, and fixed-charge coverage metrics, is strong, reflecting the margins that attend lending to borrowers with high leverage and significant credit risk. In addition, earnings have been remarkably consistent (especially given...
Companies mentioned in this report are: iStar Financial Inc.
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