Moody’s views Blackstone unit negatively

Moody's Ratings said it changed its outlook for Blackstone Mortgage Trust Inc. (BXMT) to negative from stable and affirmed the Ba3 ratings on the company and its senior secured debt and senior secured credit facilities ratings.

BXMT's reported a $124 million first-quarter net loss driven by a $235 million provision for credit losses tied to its office loans. BXMT also realized $61 million in losses in the quarter and sees another $10 million-$20 million in losses in the second quarter.

“The outlook change to negative reflects the continued deterioration in BXMT's office loan performance, which has led to a significant rise in non-accrual loans, net losses, and a decline in capitalization. The negative outlook incorporates Moody's expectation that BXMT will continue to experience asset quality and profitability challenges over the next 12-18 months given its high exposure to the office sector,” the agency said in a press release.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.