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Moody’s affirmed Ellington Financial’s Ba3 corporate family rating and B1 rating on senior unsecured debt, while raising the outlook for both entities to Positive from Stable.
The affirmation reflects Ellington’s strong capitalization, diversified portfolio of residential and commercial real estate loans, and effective risk-management and hedging strategies. Its average remaining repo maturity increased to 267 days as of June 30, 2026, from 135 days a year earlier, while annualized net income on average managed assets rose to 3.5% in the first half of 2026 from 1.97% for full-year 2025.
Asset quality also improved, with non-performing loans falling to 4.0% of gross loans from 6.5% a year earlier. The company has reported no net charge-offs, highlighting resilient credit performance.
The ratings remain constrained by exposure to cyclical residential and commercial real estate financing markets.
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