Fitch: Retail Lags as Overall U.S. CMBS Delinquencies Drop

NEW YORK--(BUSINESS WIRE)-- U.S. CMBS delinquencies fell by their largest margin in over a year thanks to high resolution volume and steady new issuance, according to the latest index results from Fitch Ratings.

Loan delinquencies fell 19 basis points (bps) in May to 4.48% from 4.67% a month earlier. The dollar balance of late-pays fell $646 million to $17.1 billion from $17.7 billion in April.

The delinquency drop was driven by resolutions of $1.03 billion outpacing new delinquencies of $411 million. Meanwhile, Fitch-rated new issuance volume of $7.2 billion in April (seven transactions) outpaced $5.8 billion in portfolio runoff in May causing an increase in the index denominator.

Despite improving month-over-month, retail ended May with the highest delinquency rate of all property types for the first time since Fitch began formally tracking delinquencies (2004). Historically, hotels and multifamily have experienced the highest CMBS delinquency rates.

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

--Retail: 5.26% (from 5.46% in April);

--Hotel: 5.18% (from 5.53%);

--Multifamily: 5.03% (from 5.19%);

--Industrial: 4.97% (from 5.29%);

--Office: 4.77% (from 5.00%);

--Mixed Use: 2.61% (from 2.59%);

--Other: 1.19% (from 1.21%).

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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View source version on businesswire.com: http://www.businesswire.com/news/home/20150608005812/en/

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

Source: Fitch Ratings

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