What Does Moody’s REIT Rating Methodology Tell Us?

By Philip Kibel, Moody’s Investors Service:

Moody’s REIT and Other Commercial Real Estate Firms Rating Methodology Grid encompasses the key factors that drive our ratings. Moody’s analysts use this grid as a starting point to evaluate the creditworthiness of a REIT or real estate operating company.

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First Financial Reaches Agreement with Regulators

The real estate lender agreed to maintain or exceed regulatory capital levels at 10 percent tier one leverage ratio and 12 percent total risk-based ratio, which it already exceeds thanks to its board of directors’ Sept. 15 directive that a portion of the company’s capital be contributed to the bank. It must also take other measures to improve its financial performance.

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