Fitch eyes Blackstone trust negatively

Fitch Ratings said it revised its outlook for Blackstone Mortgage Trust (BMXT) to negative from stable and affirmed its BB issuer default and senior secured ratings and BB-senior unsecured rating.

“The revision of the outlook reflects BXMT's ongoing credit quality deterioration, which Fitch expects to continue given the firm's elevated exposure to office commercial real estate (CRE). The negative outlook also reflects earnings pressure from the rise in credit provisions and non-accrual loans and the expectation that cash earnings will likely be adversely impacted by realized credit losses during 2024 as the firm resolves problem loans.

Finally, the outlook revision considers BXMT's relatively weaker funding profile and Fitch's view that this could persist over time,” Fitch said in a press release.

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