We believe the likelihood of substantial deterioration in Starwood Property Trust's loan portfolio has lessened since the onset of the COVID-19 pandemic. We therefore revised the outlook on our 'BB-' long-term issuer credit ratings on Starwood and subsidiary Starwood Property Mortgage to stable from negative and affirmed those 'BB-' ratings. The stable outlook reflects our expectation that the company will report stable asset quality over the next year, notwithstanding some medium-term pressures on commercial real estate, while maintaining adequate liquidity and leverage of 3.0x-4.0x. On June 7, 2021, S&P Global Ratings revised its ratings outlook on Starwood Property Trust Inc. and subsidiary Starwood Property Mortgage LLC to stable from negative. We also affirmed the 'BB-' long-term issuer credit ratings. The
