Ladder Capital Corp announced it received an investment grade rating from Moody's Ratings, assigning a Baa3 issuer rating to Ladder Capital Corp and upgrading the backed senior unsecured rating of Ladder Capital Finance Holdings LLLP to Baa3 from Ba1, both with a stable outlook. This follows Fitch Ratings' upgrade on May 21, 2025, establishing Ladder as the only commercial mortgage REIT with investment grade ratings from two agencies.
The dual investment grade ratings will directly reduce the interest spread on Ladder's $850 million unsecured revolving credit facility to 125 basis points, leading to lower borrowing costs. CEO Brian Harris highlighted that these ratings significantly enhance the company's financial flexibility and improve its cost of capital in both debt capital markets and on its revolving credit facility.
Moody's cited Ladder's strong funding and liquidity, solid capitalization, a history of consistent and less volatile profitability compared to peers, and robust credit results as key factors for the upgrade. This distinction further strengthens Ladder’s operational autonomy and ability to execute swiftly and decisively in the market.
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