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Fitch affirms iStar ratings

Fitch Ratings affirmed iStar Inc.'s long-term issuer default rating at BB-, with a stable outlook.

The rating agency also affirmed the diversified real estate investment trust's senior secured debt rating at BB+, unsecured debt rating at BB and preferred stock rating at B-.

Fitch said the affirmations take into account iStar's unique platform as an integrated commercial real estate finance and investment company, robust financing profile with a meaningful portion of unsecured debt, appropriate leverage levels for the rating and firm liquidity profile.

The stable outlook is based on Fitch's view that iStar will continue to see better earnings and asset quality over the rating outlook horizon. However, Fitch posited that the REIT could see headwinds as legacy asset sales can be lumpy and wider performance of certain commercial real estate subsectors is likely to be mixed.

The outlook also reflects Fitch's expectations that the REIT will maintain adequate liquidity, a largely unsecured financing profile and leverage that align with its portfolio's risk profile, according to the rating agency.