RPT-Fitch: 2013 Recoveries Sink for Liquidated U.S. CMBS Loans

Thu Mar 27, 2014 9:04am EDT

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March 27 (Reuters) - (The following statement was released by the rating agency)

Recovery rates on U.S. CMBS liquidated loans dropped significantly last year compared to 2012, according to the latest quarterly index results from Fitch Ratings.

The recovery rate for liquidated CMBS was 66.5% for 2013, a sharp decline from the 74.8% rate Fitch observed in 2012. 'Recoveries on liquidated U.S. CMBS loans plummeted last quarter to 57.5%, including two large malls that were liquidated with large loss severities,' said Managing Director Stephanie Petosa.

After peaking at $91.7 billion in 2010, the rate of CMBS loans in special servicing continued to fall, finishing 2013 at $51 billion. 'Encouragingly, CMBS loans continue to transfer out of special servicing at an increasing clip compared to those coming in,' said Petosa. Fitch observed $31.6 billion of CMBS loans transferred out of special servicing last year, compared to $12.1 transferred into special servicing.

The U.S. CMBS Special Servicing Index is part of Fitch's series of quarterly structured finance index reports. The latest report is available at 'www.fitchratings.com' or by clicking on the above link.

Link to Fitch Ratings' Report: CMBS Special Servicing Index – U.S.A.

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