Low leverage relative to other finance companies Strong credit performance with no realized losses on loans originated since inception Multiple sources of earnings Credit risk associated with transitional loans, subordinated mortgages and mezzanine loans, and CMBS B-Pieces Business concentration in commercial real estate, which we view as subject to cyclical fluctuations Significant secured financing that encumbers assets The stable outlook reflects S&P Global Ratings' expectation that Starwood Property Trust Inc.'s profitability and performance of its loan and investment portfolios will remain strong over the next 12 months and that leverage will be about 2.0-2.5x debt to adjusted total equity. We could lower the ratings if the company increases leverage above 2.75x, if declining commercial real estate property valuations and weakening
