S&P ups iStar to BBB- from junk

Standard & Poor's said it raised its ratings, including raising its long-term counterparty credit ratings to BBB- from BB+ on iStar Financial Inc. Additionally, the ratings on its subsidiary, TriNet Corporate Realty Trust Inc., including the BB+ long-term counterparty credit rating, were affirmed and the outlook was revised to stable from positive reflecting the stand-alone performance, portfolio quality and smaller asset base of TriNet.

S&P said the upgrade is based on the company's continued strong performance in terms of profitability, the positive track record of improving performance even through a mildly difficult real estate cycle (post 9-11), its increasing capital base, and the continued strong underwriting and servicing capabilities as evidenced by exemplary asset quality measures.

During the past year, S&P said the company has taken measured steps to improve its debt structure, focusing on unsecured debt, freeing up assets, laddering maturities and shifting the portfolio to include a greater percentage of first mortgage loans. The offsetting factors include the commercial real estate focus, the REIT structure and the large-sized assets.

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