Fitch: U.S. CMBS Delinquencies Fall Again; More Declines Pending

NEW YORK--(BUSINESS WIRE)-- Office resolutions fueled another decline in the U.S. CMBS delinquency rate last month, with the pending resolution of a high profile property set to fuel another drop, according to the latest index results from Fitch Ratings.

Loan delinquencies fell nine basis points (bps) in October to 4.37% from 4.46% a month earlier. The dollar balance of late-pays fell $348 million to $16.4 billion from $16.8 billion in September. The overall delinquency rate will drop below 4% with the imminent resolution of the Peter Cooper Village and Stuyvesant Town loan, bringing the multifamily rate to the lowest of the major property types.

Resolutions of $833 million in October exceeded new delinquencies of $504 million. Fitch-rated new issuance volume of $5.2 billion in September (five transactions) was outpaced by $5.8 billion in portfolio runoff, causing a decrease in the index denominator.

Delinquency rates are down for all property types; current and previous delinquency rates by property type are as follows:

--Retail: 5.51% (from 5.58% in September);

--Office: 4.80% (from 4.95%);

--Hotel: 4.57% (from 4.64%);

--Multifamily: 4.42%* (from 4.47%);

--Industrial: 4.22% (from 4.35%);

--Mixed Use: 4.08% (from 4.17%);

--Other: 0.93% (from 0.96%).

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
Melissa Che
Director
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or
Media Relations:
Sandro Scenga, +1 212-908-0278
[email protected]

Source: Fitch Ratings

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