News Column

Fitch: U.S. CMBS Delinquencies Flat Following 15-Month Decline

August 18, 2014



NEW YORK--(BUSINESS WIRE)-- The 15-month streak of falling delinquencies came to a close for U.S. CMBS last month as the pace of resolutions fell to a post-recession low, according to the latest index results from Fitch Ratings.

CMBS delinquencies were unchanged in July at 4.87%, bringing an end to 15 consecutive months of declines in which the rate dropped 276 basis points (bps) from 7.63%. Resolutions of $462 million last month marked a post-recession low after averaging $1.3 billion per month over the past 12 months. Similarly, new delinquencies of $398 million in July neared a post-recession low.

Despite resolutions edging out new delinquencies, the overall rate remained unchanged due to a decrease in the index denominator. Fitch-rated new issuance volume of $3.8 billion failed to keep pace with $5.9 billion in portfolio runoff. Although the July rate was flat, CMBS delinquencies could fall at least another 10 bps in the months ahead as properties listed on online marketplaces are sold.

Current and previous delinquency rates are as follows:

--Multifamily: 5.56% (from 5.65% in June);

--Hotel: 5.47% (from 5.30%);

--Industrial: 5.27% (from 5.78%);

--Office: 5.22% (from 5.13%);

--Retail: 4.85% (from 4.82%).

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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