TEXT-Fitch: November delinquencies up sharply for U.S. CREL CDOs

Fri Dec 14, 2012 9:03am EST

Dec 14 - After treading water for the last few months, delinquencies increased sharply for U.S. CREL CDOs in November, according to the latest index results from Fitch Ratings.

U.S. CREL CDO delinquencies rose by 1.5% last month to close at 13.7% (up from 12.2% in October).

Since the end of 2011, total CDO collateral has declined by over $2.5 billion as performing assets in CREL CDOs continue to payoff and asset managers resolve defaulted and credit risk assets.

Nearly half of the new delinquencies (by loan balance) are attributable to loans backed by hotel properties, including a $70 million matured balloon mezzanine loan backed by five full service hotels located in five different states. Hotel loans lead the index at 26.4% of all delinquent assets.

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:

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