Fitch: Smaller U.S. CMBS Originators Affecting New Deal Quality

NEW YORK--(BUSINESS WIRE)-- Link to Fitch Ratings' Report: CMBS Originators Matter III: X Marks the Spot (Trends, Observations and Comparisons of Conduit Originations)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=866719

Fitch Ratings is finding disparities in the underwriting metrics of U.S. CMBS loans based on originator type: large banks, small banks and non-banks. This has led to an overall decline in credit quality in recent months, according to the latest report in its 'Originators Matter' series.

Fitch measured, 30 originators against five credit metrics; the report outlines which metric hurdles were breached by each originator. 'CMBS investors are becoming increasingly concerned about the ability of conduit originators to maintain credit quality given the growing number of loan originators,' said Managing Director, Stephanie Petosa,

Credit metrics for loans that large issuing banks are bringing to new CMBS deals are showing stronger attributes than those contributed by smaller banks and non-banks. The influx of smaller originators to the CMBS market has led to weaker deal metrics. Also, larger banks are contributing less to new deals over the last few quarters. 'Large issuing banks are becoming more vocal about trying to increase the percentage they contribute to their securitizations.' added Petosa.

While CMBS loans originated by the largest banks have the strongest credit metrics, smaller bank or non-bank originators have the weakest. In fact, six of the smaller CMBS loan contributors had three or more breaches of Fitch's metric hurdles.

'Originators Matter III - "X" Marks the Spot' is available at 'www.fitchratings.com' or by clicking on the above link.

Additional information is available at 'www.fitchratings.com'.

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View source version on businesswire.com: http://www.businesswire.com/news/home/20150608005762/en/

Fitch Ratings
Stephanie Petosa
Managing Director
+1 212-908-0720
Fitch Ratings, Inc., 33 Whitehall Street, New York, NY, 10004
or
Huxley Somerville
Managing Director
+1 212-908-0381
or
Media Relations:
Sandro Scenga, +1-212-908-0278
[email protected]

Source: Fitch Ratings

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