S&P assigns BB- to Starwood notes

S&P said it assigned a BB- issue rating to Starwood Property Trust Inc.'s offering of $400 million of senior unsecured sustainability bonds due 2029.

“We rate the unsecured bonds a notch below Starwood's issuer credit rating of BB because of their structural subordination to the secured debt that makes up most of the company's liabilities. But we view favorably the use of unsecured debt because it demonstrates Starwood's access to the capital markets and helps unencumber assets,” S&P said in a press release.

The company will use the proceeds to finance or refinance eligible green or social projects, with little effect on its leverage.

The outlook is stable.

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