Fitch’s latest look at CMBS delinquencies isn’t particularly comforting:
Fitch Ratings–NY–5 February 2010: The delinquent status of the Extended
Stay America loan was a large contributor to a 129 basis-point (bp)
increase in overall U.S. CMBS delinquencies last month to 6%, according
to Fitch Ratings in its weekly U.S. CMBS newsletter.
‘While the Extended Stay loan is a significant contributor to the
increase in delinquencies, a steady up-tick in all property types will
lead to continued increases in the months ahead’, said Managing Director
Susan Merrick. ‘Even without the classification of the Extended Stay
loan as delinquent, the Index would have increased to 5.10% instead of
For the fifth month running, each of the five main property types saw an
increase in delinquencies. Delinquency rates for those properties
compared to last month are as follows:
–Office: 3.06% (vs. 2.66%);
–Hotel: 16.44% (vs. 9.13%);
–Retail: 4.94% (vs. 4.25%);
–Multifamily: 8.33% (vs. 7.54%);
–Industrial: 3.73%. (vs. 3.57%).
Additional information on Fitch’s monthly delinquency results is
available in the e-newsletter, titled “U.S. CMBS Market Trends”. Also
highlighted are Fitch’s latest rating actions, links to the most recent
of the 78 completed Fitch CMBS Focus Reports and a list of the largest
loans transferred to the special servicer in the last week.
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