Starwood Property Trust Inc.'s asset quality has deteriorated moderately over the last year amid difficult conditions in the commercial real estate markets (CRE). However, we expect the company's good diversification, expertise in managing troubled assets, and sizable unencumbered assets will allow it to navigate challenges in CRE markets without significant weakening its financial or business position. As a result, we affirmed our 'BB' long-term issuer credit ratings on Starwood and its subsidiary, Starwood Property Mortgage. The stable outlook on those ratings indicates that we expect Starwood to navigate difficult conditions in CRE markets without a sharp worsening in its asset quality, liquidity, or performance. On Feb. 28, 2024, S&P Global Ratings affirmed its 'BB' long-term issuer credit ratings on Starwood
