Strong underwriting record with minimal losses on loans originated since inception Better diversification than most nonbank commercial real estate lenders with multiple business lines and exposure to various asset classes and geographies Management's experience and expertise Dependent on secured funding that encumbers assets and comes with margin call risk Credit risk associated with first-lien transitional loans--including a sizeable portfolio of office loans--and various subordinated and mezzanine assets Majority of business related to commercial real estate, which can be volatile and risky S&P Global Ratings' stable outlook on Starwood Property Trust Inc. reflects our expectation that over the next year Starwood--helped by the rebounding economy--will report mostly stable asset quality trends while maintaining adequate liquidity and leverage of 3.0x-4.0x, as measured
