S&P Global Ratings upgraded its issuer credit, senior secured and senior unsecured debt ratings on iStar Inc. to BB from BB- and its preferred stock rating on the company to B from B-.
The ratings outlook on the diversified real estate investment trust's issuer credit rating is stable.
The rating agency said the upgrade takes into account the REIT's conversion of $200 million of convertible preferred stock into common equity and recent debt refinancing, which have lowered interest expense and preferred dividends. These factors, when combined with the company's increased investment in ground lease-focused REIT Safehold Inc., should improve its core profitability going forward, Ratings added.
The stable outlook factors in the rating agency's expectation that iStar's leverage will remain below 2.75x.
This S&P Global Market Intelligence news article may contain information about credit ratings issued by S&P Global Ratings. Descriptions in this news article were not prepared by S&P Global Ratings.