RPT-Fitch: U.S. CMBS Delinquencies Fall for 15th Straight Month

Mon Jul 14, 2014 9:09am EDT

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

U.S. CMBS delinquencies continued their steady post-recession decline last month as rates for the major property types now all stand below 6%, according to the latest index results from Fitch Ratings. CMBS delinquencies fell 10 basis points (bps) in June to 4.87% from 4.97% a month earlier. This marks the 15th straight month of declines. Although the rate has continued to decline, Fitch is tracking a number of larger loan special servicing transfers, as borrowers request modifications prior to upcoming loan maturities. Should modifications not be granted, some of these loans may become delinquent, which could reverse or slow the declining trend.

Resolutions in June were led by the note sale of the $112 million (scheduled balance at liquidation) Senior Living Properties Portfolio loan (GMACC 1998-C1). The largest new delinquency in June was the $55 million RiverCenter I & II loan (BSCMSI 2007-TOP28), which was reported to have defaulted at its June 8, 2014 maturity.

In total, resolutions of $827 million last month outpaced new additions to the index of $449 million.

Current and previous delinquency rates are as follows:

--Industrial: 5.78% (from 6.43% in May);

--Multifamily: 5.65% (from 5.92%);

--Hotel: 5.30% (from 5.12%);

--Office: 5.13% (from 5.22%);

--Retail: 4.82% (from 4.98%).

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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