Fitch: Hotel Issuance Pushes U.S. CMBS Delinquencies Lower

NEW YORK--(BUSINESS WIRE)-- The U.S. CMBS delinquency rate fell again last month fueled by strong new issuance, especially of hotels, according to the latest index results from Fitch Ratings.

Loan delinquencies fell six basis points (bps) in April to 4.67% from 4.73% a month earlier. The dollar balance of late-pays fell just slightly to $17.75 billion from $17.80 billion in March. The delinquency drop was mostly due to an increase in the index denominator thanks to a high volume of Fitch-rated new issuance (eight transactions totaling $9 billion in March). This was led by hotel loans, which totaled $4.4 billion?mostly via single borrower transactions. Meanwhile, portfolio runoff totaled $5.2 billion in April, in line with $5.1 billion in March.

New CMBS delinquencies finished April at $376 million, up slightly from $357 million in March. The largest new delinquency was only $29 million (Fort Knox Executive Office Center, JPMCC 2005-LDP2), which was reported as a non-performing matured balloon loan.

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

--Hotel: 5.53% (from 6.13% in March);

--Retail: 5.46% (from 5.41%);

--Industrial: 5.29% (from 5.57%);

--Multifamily: 5.19% (from 5.21%);

--Office: 5% (unchanged);

--Mixed Use: 2.59% (from 2.69%);

--Other: 1.21% (from 1.17%).

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'.

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Fitch Ratings
Mary MacNeill
Managing Director
+1-212-908-0785
Fitch Ratings, Inc., 33 Whitehall Street, New York, NY 10004
or
Scott Pritchard
Director
+1-212-908-9141
or
Media Relations:
Sandro Scenga, New York, +1 212-908-0278
Email: [email protected]

Source: Fitch Ratings

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