RPT-Fitch: U.S. CMBS delinquencies poised for big drop

Fri Feb 14, 2014 9:06am EST

Feb 14 (Reuters) - (The following statement was released by the rating agency)

U.S. CMBS delinquencies are set for a sizable decline once assets sold as part of CWCapital's bulk sale are reported, according to Fitch Ratings.

In January, CMBS delinquencies declined nine basis points (bps) to 5.89% from 5.98% a month earlier. However, CMBS late-pays are poised to fall by approximately 40 bps over the next two months due to CWCapital bulk asset sales being finalized and reflected in the February and March remittances. The CWCapital distressed sales would likely bring the overall rate of CMBS delinquencies below 5.5% by the end of the first quarter.

The largest addition to the index last month was the $74 million One HSBC Center in Buffalo, NY (GSMS 2005-GG4). Meanwhile, the largest resolution in January was the sale of the real estate owned (REO) Metropolis Shopping Center (BACM 2007-3).

Current and previous delinquency rates are as follows:

--Industrial: 8% (from 8.45% in December);

--Office: 6.77% (from 6.89%);

--Multifamily: 6.38% (from 6.48%);

--Hotel: 6.26% (from 6.50%);

--Retail: 5.44% (from 5.63%).

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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