Fitch: Delinquency Divide Widening for U.S. CMBS 1.0 and 2.0

NEW YORK--(BUSINESS WIRE)-- U.S. CMBS delinquencies fell last month for the first time since March even though late-pays on older vintages continue to rise, according to the latest index results from Fitch Ratings.

Loan delinquencies declined by five basis points (bps) in August to 3.15% from 3.20% a month earlier. The portfolio runoff of $8.1 billion doubled Fitch-rated new issuance volume of $4 billion from six transactions in July, causing a decrease in the overall index denominator. Contributing to the majority of the 45-bp decline in the hotel delinquency rate, the largest resolution was the JQH Hotel Portfolio loan, which consists of a $127.9 million A-note (JPMCC 2006-LDP7) and an $8.4 million B-note (CD 2007-CD4).

While the overall delinquency rate has declined, CMBS 1.0 delinquencies have risen since the start of 2016 and were up for the seventh consecutive month, now nearing 11%. Over 50% of the outstanding CMBS 1.0 delinquencies are REO assets, with an average aging of approximately 23 months. The largest new delinquency was the $113.7 million SBC-Hoffman Estates loan ($55.7 million in a Fitch-rated transaction (BSCMS 2006-PWR11) and $58 million in a non-Fitch-rated transaction (MSCI 2006-TOP21)).

Current and previous delinquency rates by property type are as follows:

--Retail: 4.79% (from 4.73% in July);

--Office: 4.55% (from 4.56%);

--Hotel: 3.85% (from 4.30%);

--Multifamily: 0.79% (from 0.86%);

--Industrial: 4.05% (from 3.98%);

--Mixed Use: 4.01% (from 4.03%);

--Other: 0.72% (from 0.76%).

Additional information is available in Fitch's weekly e-newsletter, 'U.S. CMBS Market Trends', which also contains recent rating actions and an overview of newly released CMBS research, including Fitch presales and Focus reports. The link below enables market participants to sign up to receive future issues of the E-newsletter: 'http://pages.fitchemail.fitchratings.com/CMBSMktOptin/'

Additional information is available at www.fitchratings.com.

ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.

View source version on businesswire.com: http://www.businesswire.com/news/home/20160912005809/en/

Fitch Ratings
Mary MacNeill
Managing Director
+1-212-908-0785
Fitch Ratings, Inc., 33 Whitehall Street, New York, NY 10004
or
Melissa Che
Director
+1-212-612-7862
or
Media Relations:
Sandro Scenga, +1 212-908-0278
[email protected]

Source: Fitch Ratings

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• HIS HIGHNESS SHAIKH KHALED ALQASSIMI ANNOUNCES SUPPORT FOR LEMLOANS AS DECENTRALIZED LENDING PROTOCOL EXPANDS ITS GLOBAL ROADMAP
• XRP ETF Demand Builds as IceBull Keeps Stage 1 Open for Buyers Searching for the Best Crypto to Buy Now
• Encrypted Phone Vault Vaultaire Makes Client-Side Cloud Backup Free for Every User