Bonds News

Comm'l real estate to start recovery in 2011-Moody's

NEW YORK, June 12 (Reuters) - Moody’s Investors Service on Friday said that while the broader U.S. economy is showing signs of stabilizing, the commercial real estate sector will likely deteriorate for another few quarters before starting to recover in 2011.

The rating agency said it expects the ratings it announced in February and March following an analysis of commercial mortgage-backed securities deals to remain intact for now.

Super-senior Aaa-rated CMBS are unlikely to be downgraded, although mezzanine Aaa bonds may be cut if delinquencies increase late in the loan term, Moody’s said in a statement. (Reporting by Ciara Linnane and Al Yoon; Editing by Theodore d’Afflisio)