Fitch assigns Ladder notes BB+

Fitch Ratings said it assigned an expected rating of BB+ to Ladder Capital Finance Holdings LLLP’s proposed offering of $500 million of notes due 2027.

Fitch does not expect the notes to have a material effect on the firm’s leverage as proceeds from the new unsecured notes are expected to be used to repay secured borrowings.

The agency also placed Ladder and Ladder Capital Finance Corp. on ratings watch positive.

The rating watch positive reflects expected improvement in the Ladder’s funding flexibility following the completion of the announced unsecured debt offering, as unsecured debt is expected to increase to about 34.2% of total debt and secured debt is expected to decrease.

Fitch sees resolving the rating watch positive upon closing of the unsecured debt issuance, at which point Fitch would expect to upgrade Ladder’s existing ratings by one notch to BB+.

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