Research Update: Ladder Capital Outlook Revised To Stable On Easing Asset Quality Risks And Ample Liquidity; 'BB-' Rating Affirmed

We think that the likelihood of substantial deterioration in Ladder Capital's (LADR's) loan portfolio has lessened as the COVID-19 pandemic recedes. Also, LADR has raised ample liquidity, with unrestricted cash of $1.3 billion as of March 31, 2021. As a result, we revised our outlook to stable from negative and affirmed our 'BB-' issuer credit rating on LADR. The stable outlook indicates our expectation that over the next year LADR--helped by the rebounding economy--will report mostly stable asset quality trends while maintaining adequate liquidity and leverage between 2.5x-3.5x debt to adjusted total equity. On June 7, 2021, S&P Global Ratings revised its outlook on Ladder Capital Finance Holdings LLLP (LADR) to stable from negative. We also affirmed our 'BB-' long-term

...- We think that the likelihood of substantial deterioration in Ladder Capital's (LADR's) loan portfolio has lessened as the COVID-19 pandemic recedes. - Also, LADR has raised ample liquidity, with unrestricted cash of $1.3 billion as of March 31, 2021. - As a result, we revised our outlook to stable from negative and affirmed our '##-' issuer credit rating on LADR. - The stable outlook indicates our expectation that over the next year LADR--helped by the rebounding economy--will report mostly stable asset quality trends while maintaining adequate liquidity and leverage between 2.5x-3.5x debt to adjusted total equity....

Research Update