Ongoing business support from joint venture owners Experienced management team Dependence on repurchase agreement funding Exposed to volatility in the commercial mortgage-backed securities market Limited scale and concentration in commercial real estate The negative outlook on LoanCore Capital Markets LLC (LCM) reflects S&P Global Ratings' expectation that the company's leverage will fluctuate around the timing of originations and securitizations, and it could increase to over 6.5x when the company ramps up new originations. We believe that LCM may continue to face headwinds in originating commercial real estate mortgages and from commercial mortgage-backed securities market volatility, but it will maintain sufficient liquidity over the next 12 months. We could lower the rating over the next 12 months if: Leverage rises over
