Moody’s ups Ladder, rates notes Ba2

Moody’s Investors Service said it upgraded the long-term corporate family rating of Ladder Capital Corp. to Ba1 from Ba2 and the long-term senior unsecured rating of Ladder Capital Finance Holdings LLLP to Ba2 from Ba3. Moody’s also assigned a Ba2 rating to Ladder Capital Finance Holdings LLLP’s new long-term senior unsecured debt due in 2027. Following the ratings upgrade, Moody’s changed the outlook to stable from positive.

The ratings upgrade indicates Moody’s view that Ladder’s funding profile will improve upon completion of the planned sale of $500 million of senior unsecured debt.

The company will use the proceeds to repay secured borrowings, thereby reducing its ratio of secured debt to gross tangible assets to about 46% as of Dec. 31, from 56% as of Sept. 30. Moody’s said Ladder’s reduced reliance on secured debt will increase its unencumbered asset pool and expand its access to unsecured debt investors.

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