Relatively low debt Strong loan performance Substantial collateral values Very profitable operations Affiliation with Starwood Capital Group Reliance on short-term secured financings Substantial credit risk within the investment portfolio Small market position in a competitive industry 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 potential margin calls, and its relatively short operating history. The company's low leverage, strong earnings, and the 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 (REIT). An affiliate of Starwood Capital Group (SCG; not rated),
