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Fitch Revises iStar Financial's Preferred Stock Ratings to 'CCC-/RR6'.

NEW YORK -- Fitch Ratings has revised iStar Financial Inc.'s (NYSE: SFI) preferred stock ratings following an update to its Rating Definitions.

The revised rating reflects updated criteria that provides for the insertion of additional notches into Fitch's master rating scale for instrument ratings, rather than a change in Fitch's view of the creditworthiness of iStar or its preferred stock affected by this rating action.

Thus, iStar's preferred stock rating was revised to 'CCC-/RR6' from 'CC/RR6'.

The preferred stock rating of 'CCC-/RR6' or a three-notch negative differential from iStar's 'B-' Issuer Default Rating (IDR) is based on Fitch's estimate of poor recovery based on iStar's current capital structure.

At iStar's 'B-' IDR and 'RR6' preferred stock recovery rating, Fitch's recovery ratings criteria provide flexibility for a two- or three-notch negative differential between the IDR and instrument rating. Fitch applied a three-notch negative differential based on the nature of iStar's perpetual preferred stock - a deeply subordinated security that has weak terms and remedies available both before and after a general corporate default (e.g. no stated maturity, an inability for holders to put the security back to the company, and iStar has the ability to defer dividends indefinitely without triggering a corporate default).

Additional information is available at 'www.fitchratings.com'. The ratings above were solicited by, or on behalf of, the issuer, and therefore, Fitch has been compensated for the provision of the ratings.

Applicable Criteria and Related Research:

--'Recovery Ratings and Notching Criteria for Non-Financial Corporate Issuers' (Aug. 14, 2012).

Applicable Criteria and Related Research:

Recovery Ratings and Notching Criteria for Non-Financial Corporate Issuers

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=686476

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Comment:Fitch Revises iStar Financial's Preferred Stock Ratings to 'CCC-/RR6'.
Publication:Business Wire
Geographic Code:1U2NY
Date:Aug 29, 2012
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