RPT-Fitch: EMEA CMBS Servicers In For a Busy October
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Oct 2 (Reuters) - (The following statement was released by the rating agency)
October is set to be a challenging month for EMEA CMBS loan maturities, with 36 of the 37 loans from Fitch Ratings' portfolio that are maturing in Q3 falling due this month, according to the agency's latest quarterly index.
"Three-quarters of the loans due are highly levered, with Fitch loan-to-values above 80%. This indicates timely repayment is unlikely," said Mario Schmidt, Associate Director in Fitch's Structured Finance team. "We estimate that 14 of the loans maturing this quarter have negative equity."
A closer look by Fitch at the quarter ahead reveals six loans already in default and special servicing, with each of these loans likely to generate a loss. "Most borrowers are cut out of the loan market and unable to refinance, which makes maturity extensions and standstill agreements an option in many cases, especially outside the UK," said Schmidt. "Loss allocations are also rising as loan workouts are finalised."
The EMEA Commercial Mortgage Market Index is part of Fitch's quarterly structured finance index reports. It is available at www.fitchratings.com or by clicking on the link below.
Link to Fitch Ratings' Report: Commercial Mortgage Market Index - EMEA Q313
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