S&P: Ladder Capital bonds B+

S&P said it assigned a B+ rating to Ladder Capital Finance Holdings LLLP's new $500 million unsecured bonds.

The agency also said it affirmed the company’s BB- rating.

The outlook remains stable.

The ratings reflect the company’s concentration in commercial real estate and partial reliance on secured repurchase facilities that have the potential for margin calls, S&P said.

The company's conservative management of its leverage and liquidity, experienced management team and access to borrowings from the Federal Home Loan Bank system mitigate these risks, the agency said.

This issuance extends the maturity of Ladder's current unsecured notes and unencumbers the balance sheet, S&P said.

The ratings on Ladder's senior unsecured debt are one notch lower than the issuer credit rating because priority debt significantly exceeds 30% of adjusted assets, the agency explained.

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