Ladder Capital Finance Holdings LLLP

Strong asset quality Diverse revenue sources Significant use of secured financing lines with the potential for margin calls Concentration in commercial real estate (CRE), including transitional properties for on-balance-sheet loans The negative outlook on Ladder Capital Finance Holdings LLLP reflects the company's exposure to margin calls from its repurchase facilities over the next 12 months in an environment where there could be significant deterioration in the credit quality of Ladder's asset portfolio. We expect Ladder will operate with debt to adjusted total equity (ATE) of 2.75x to 3.5x. S&P Global Ratings could lower the rating on Ladder over the next 12 months if the company's liquidity is depleted through margin calls or if its profitability is significantly eroded through increased

...Strengths: Weaknesses: + Strong asset quality + Diverse revenue sources + Significant use of secured financing lines with the potential for margin calls + Concentration in commercial real estate (CRE), including transitional properties for on-balance-sheet loans Outlook The negative outlook on Ladder Capital Finance Holdings LLLP reflects the company's exposure to margin calls from its repurchase facilities over the next 12 months in an environment where there could be significant deterioration in the credit quality of Ladder's asset portfolio. We expect Ladder will operate with debt to adjusted total equity (ATE) of 2.75x to 3.5x. S&P Global Ratings could lower the rating on Ladder over the next 12 months if the company's liquidity is depleted through margin calls or if its profitability is significantly eroded through increased provisions for loan losses. We could also lower the rating if leverage materially increases above our expected range. We could revise our outlook on Ladder to...

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