Fitch: Pace of U.S. CMBS Special Servicing Transfers Quickening

NEW YORK--(BUSINESS WIRE)-- U.S. CMBS loans are transferring to special servicing at an accelerated pace through the first six months of this year, a trend Fitch Ratings expects will continue according to its latest weekly U.S. CMBS newsletter.

At the end of last year, Fitch identified approximately $65 billion of conduit loans scheduled to mature in 2016. Of that amount, $10 billion was already defeased and $11 billion was already defaulted. Across the remaining $44 billion, over 90% ($40 billion) were from loans securitized within the 2006 and 2007 vintages.

Following an analysis of its rated universe of 2006 and 2007 vintage conduit loans that transferred to special servicing this year, Fitch noted that these transfers (through mid-June) represent approximately $4.5 billion (203 loans). The pace of loan transfers peaked in March and April, with nearly $1 billion and $1.6 billion of 2006 and 2007 vintage loans transferring to special servicing.

Office loans overwhelmingly accounted for the largest portion of transfers to special servicing at over $2 billion. Of the $4.5 billion of 2006 and 2007 loans transferring to special servicing through mid-June this year, approximately 14% ($621 million; 38 loans) have already been liquidated to date.

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
Melissa Che
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Source: Fitch Ratings

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