The positive outlook reflects S&P Global Ratings' expectation that over the next year, Ladder will maintain its funding mix and report stable asset quality trends while maintaining adequate liquidity and leverage of around 3.0x, as measured by debt to adjusted total equity (ATE). Pandemic-related changes and pressures in CRE, like the office market, could still create challenges in the coming years, but we expect Ladder to work through these while maintaining its leverage and adequate liquidity. We could revise the outlook to stable in the next 12 months if the company's asset quality significantly deteriorates or liquidity becomes strained. We could also lower the ratings if leverage increases substantially above 3.0x. We could raise the ratings over the next 12
