Relatively low debt Strong loan performance Substantial collateral values Very profitable operations Affiliation with Starwood Capital Group Substantial credit risk within the investment portfolio Heavily dependent on short-term secured financing Small market position in a competitive industry Some integration risks given pending acquisition of LNR Limited operating history The ratings on specialty finance company Starwood Property Trust Inc. reflect its exposure to subordinated commercial real estate (CRE) loans and securities, its reliance on secured funding lines with the potential for margin calls, and its relatively short operating history. The company's low leverage, strong earnings, and conservative loan-to-value ratios of its loans help mitigate these risks. Founded in 2009, Starwood is a CRE lender structured as a real estate investment trust
