Low leverage relative to other finance companies Strong credit performance with minimal losses on loans originated since inception Diversified lines of business with multiple sources of earnings Significant secured financing that encumbers assets, including repurchase funding with margin-call risk Credit risk associated with transitional loans, subordinated mortgages and mezzanine loans, and subordinated interests of commercial mortgage-backed securities Majority of business is related to commercial real estate, which we view as subject to cyclical fluctuations The stable outlook on Starwood Property Trust Inc. (Starwood) and its subsidiary, Starwood Property Mortgage LLC (SPM), reflects S&P Global Ratings' expectation that Starwood's profitability and performance of its loan and investment portfolios will remain strong over the next 12 months and that leverage will be
