NEW YORK, Dec. 24, 2019 /PRNewswire/ -- iStar Inc. (NYSE: STAR) announced that S&P Global Ratings has raised its issuer rating, senior secured, and senior unsecured debt ratings for iStar Inc. to BB from BB-, raised its preferred stock rating to B from B-, and assigned a stable outlook to the issuer credit rating.
In the rationale for the upgrade, S&P Global stated, "The conversion [of iStar's $200 million of convertible preferred stock into common equity] and iStar's recent debt refinancings have reduced interest expense and preferred dividends which, along with growth of its investment in Safehold Inc. should improve core profitability going forward."
S&P Global continued, "The stable outlook reflects our expectation that [S&P's calculation of] debt to adjusted total equity leverage will remain below 2.75x, supported by improved core earnings, and that iStar will maintain its long-term, largely unsecured funding profile and good liquidity."
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iStar Inc. (NYSE: STAR) is focused on reinventing the ground lease sector, unlocking value for real estate owners throughout the country by providing modern, more efficient ground leases on all types of properties. As the founder, investment manager and largest shareholder of Safehold Inc. (NYSE: SAFE), the first publicly traded company to focus on modern ground leases, iStar is helping create a logical new approach to the way real estate is owned, and continues to use its historic strengths in finance and net lease to expand this unique platform. Recognized as a consistent innovator in the real estate markets, iStar specializes in identifying and scaling newly discovered opportunities and has completed more than $40 billion of transactions over the past two decades. Additional information on iStar is available on its website at www.istar.com.
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SOURCE iStar Inc.