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 (REIT). An affiliate of Starwood Capital Group (not rated), a privately held CRE investor, manages Starwood. The company also expects to acquire LNR Property LLC, a CRE investment and special servicer firm, in the second quarter. Standard&Poor's Ratings Services' rating on Starwood also reflects the integration
