Ladder Capital Corp announced it has received an investment grade credit rating from Fitch Ratings, a significant strategic achievement. Fitch assigned a Long-Term Issuer Default Rating of ‘BBB-’ with a Stable outlook to Ladder Capital Finance Holdings LLLP and Ladder Capital Finance Corporation, also upgrading senior unsecured debt ratings to ‘BBB-’.
This rating makes Ladder the only commercial mortgage REIT to hold an investment grade rating, solidifying its market-leading position. CEO Brian Harris stated that the upgrade affirms the company's resilient business model, which focuses on originating diversified mid-market commercial real estate loans and utilizing primarily long-term unsecured corporate debt.
The investment grade rating is expected to enhance Ladder's access to unsecured capital markets, thereby reducing its reliance on secured warehouse lines and CLOs. Fitch cited Ladder's enhanced funding flexibility, strong liquidity, conservative underwriting culture, and low credit losses as key factors contributing to the upgrade.
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