Fitch: U.S. CMBS Delinquencies Stable in February; Large Payoffs Hit

NEW YORK--(BUSINESS WIRE)-- Delinquencies of U.S. CMBS were nearly flat last month, though portfolio runoff caused the rate to edge up, according to the latest index results from Fitch Ratings.

Loan delinquencies increased five basis points (bps) in February to 4.77% from 4.72% a month earlier due to a $4.9 billion decrease in Fitch's rated universe. New CMBS delinquencies finished February at $327 million, up slightly from $274 million in January but still near post-recession lows. Fitch-rated new issuance volume of $200 million (one transaction) was far outpaced by $5.1 billion in portfolio runoff.

The February runoff was led by the refinance and payoff of the Motel 6 Portfolio (Motel 6 Trust 2012-MTL6), a portfolio of 517 Motel 6, Studio 6, and Red Roof properties. The runoff was also fueled by the payoff of the defeased $348 million AmericasMart loan (WBCMT 2005-C19 and WBCMT 2005-C20) and the $113.5 million Civica Office Commons loan (LBUBS 2005-C2).

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

--Hotel: 6.36% (from 6.15% in January);

--Retail: 5.39% (unchanged);

--Multifamily: 5.23% (from 5.21%);

--Industrial: 5.20% (from 5.04%);

--Office: 5.08% (from 5.00%);

--Mixed Use: 3.05% (2.86%);

--Other: 1.09% (from 1.08%).

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
Scott Pritchard
Director
+1 212-908-9141
or
Media Relations, New York
Sandro Scenga
+1 212-908-0278
[email protected]

Source: Fitch Ratings

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