Moody's Investors Service assigned a B1 rating to iStar Financial's (SFI) proposed $1.8 billion senior secured term loan. The debt was originally written in 2011 and is set to mature beginning next year.
The credit rating firm upgraded the commercial real estate financier's corporate family rating to B2 from B3. It also upgraded the A-1 and A-2 tranches of its 2012 senior secured facilities to Ba3 and B1, respectively.
Moody's raised the ratings on iStar's senior unsecured credit rating to B3 as well as all series of iStar's preferred stock to Caa2.
Standard & Poor's affirmed iStar's long-term issuer credit rating of B+ and at the same time assigned a BB- rating on the proposed senior secured term loan.
"Our strategy for managing our liabilities has been to strengthen liquidity, deliver the balance sheet and better align the maturities of our debt with our assets," said David DiStaso, iStar's chief financial officer.
"Moody's B2 corporate rating and B1 rating on our proposed facility, along with Standard and Poor's B+ issuer credit rating and BB- rating on our proposed facility, reflect the successful execution of this strategy," DiStaso said.