RPT-Fitch: U.S. CMBS Delinquencies Hold Steady

Mon May 12, 2014 9:06am EDT

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May 12 (Reuters) - (The following statement was released by the rating agency)

The U.S. CMBS delinquency rate held mostly steady in April following significant declines in the prior two months, according to the latest index results from Fitch Ratings.

CMBS delinquencies ticked down three basis points (bps) in April to 5.13% from 5.16% a month earlier. This marks the smallest drop in over a year, after declines of 10 bps or more in nine of the past 12 months. The CW bulk sale has recently concluded; none of the servicers currently have assets marketed as part of a bulk sale.

The largest new delinquency was the $80 million 1111 Marcus Avenue loan (JPMMC 2006-FL2), secured by a condominium interest in an office complex in New Hyde Park, NY. Meanwhile, the largest resolution was the $80.5 million Central Parke Pool (WBCMT 2006-C25), a real estate owned (REO) asset that was sold for a 61% loss.

In total, resolutions of $689 million in April outpaced new additions to the index of $561 million. Current and previous delinquency rates are as follows:

--Industrial: 6.67% (from 6.74% in March);

--Multifamily: 5.97% (from 6.03%);

--Office: 5.43% (from 5.36%);

--Hotel: 5.18% (from 5.35%);

--Retail: 5.11% (from 5.15%).

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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