Fitch: U.S. CMBS 2.0 Loans in Special Servicing Remain Light

NEW YORK--(BUSINESS WIRE)-- The incidence of U.S. CMBS 2.0 loans entering special servicing remains infrequent and likely will remain so for the foreseeable future, according to Fitch Ratings.

Special servicing transfers should remain few and far between for CMBS 2.0 loans at least until the loans approach nearer to maturity. In-place cash flow is generally sufficient and CMBS 2.0 loans will continue to benefit from low interest rates.

There are currently 27 conduit loans, totaling $282 million from the 2010 through 2015 vintages that are in special servicing. This represents only 0.1% of all outstanding loans from the Fitch rated U.S. CMBS 2.0 universe. The majority of CMBS 2.0 transfers have been idiosyncratic in nature and centered around sponsor issues, with 16 of the 27 loans remaining current on debt service.

Among the most notable CMBS 2.0 special servicing transfers to date revolve around the struggling retail sector. The Hudson Valley Mall in Kingston, New York has seen a significant occupancy decline since issuance. The mall is anchored by several retail tenants including JC Penney (JCP) and has a lease expiration of April 2017. However, JCP announced earlier this year its intention to vacate in April 2015 and is now dark. Another is The Commons at Manahawkin Village in New Jersey. Though the property has maintained stable financial performance, the loan has been chronically late on payments since its inception in 2011.

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.

Fitch Ratings
Mary MacNeill
Managing Director
+1-212-908-0785
Fitch Ratings, Inc.
33 Whitehall Street
New York, NY 10004
or
Darren Liss
Director
+1-212-908- 0753
or
Media Relations
Sandro Scenga, +1 212-908-0278
[email protected]

Source: Fitch Ratings

You May Also Be Interested In

• GCI: The World Cup's 174 Billion Illegal Streaming Problem
• ACES India Signs 25-Year Agreement with Reliance Jio to Enable 4G and 5G Connectivity across Mumbai Metro Aqua Line-3
• PINSPARK Celebrates National Golf Month with High-Performance UPF 50+ Golf Collection – Summer Style on the Course for Men and Women