News Column

Fitch: U.S. CMBS Delinquencies Below 5% for First Time Since 2009

June 16, 2014



NEW YORK--(BUSINESS WIRE)-- Resolutions from a single 2007-vintage deal brought U.S. CMBS delinquencies down to a level not seen in over four years, according to the latest index results from Fitch Ratings.

CMBS delinquencies declined 16 basis points (bps) in May to 4.97% from 5.13% a month earlier. This marks the first time the rate has stood below 5% since December 2009. The decline was led by a handful of dispositions from the JPMCC 2007-LDP10 transaction, including two loans over $50 million.

The largest new delinquency was the $60 millionClark Tower loan (JPMCC 2007-CIBC20), which fell 60-days delinquent last month. By property type, industrial experienced the largest decline in delinquencies last month (24 bps).

Current and previous delinquency rates are as follows:

--Industrial: 6.43% (from 6.67% in April);

--Multifamily: 5.92% (from 5.97%);

--Office: 5.22% (from 5.43%);

--Hotel: 5.12% (from 5.18%);

--Retail: 4.98% (from 5.11%).

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, +1 212-908-0785

Managing Director

Fitch Ratings, Inc., 33 Whitehall Street, New York, NY 10004

or

Scott Pritchard, +1 212-908-9141

Director

or

Media Relations:

Sandro Scenga, +1 212-908-0278

sandro.scenga@fitchratings.com

Source: Fitch Ratings


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