Moody’s changes view on real estate lenders

Moody’s Investors Service said it affirmed the ratings of the following non-bank commercial real estate lenders and changed their outlooks to negative from stable: Ladder Capital Corp. (Ba1), Starwood Property Trust, Inc. (Ba2), Blackstone Mortgage Trust, Inc. (Ba2), Apollo Commercial Real Estate Finance, Inc. (Ba3), Claros Mortgage Trust, Inc. (Ba3) and LoanCore Capital Markets LLC (B1).

“The rapid and widening spread of the coronavirus outbreak and falling oil prices have led to a severe and extensive credit shock across many sectors, regions and markets,” the agency said in a news release.

Given Moody's expectation for deteriorating asset quality, profitability, capital and liquidity, the CRE sector is among those most affected by this credit shock, Moody’s said.

Moody's said it regards the coronavirus outbreak as a social risk under its environmental, social and governance framework, given the substantial implications for public health and safety.

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