Fitch: April to be a Rough Month for EMEA CMBS Maturities

LONDON--()--Link to Fitch Ratings' Report: Commercial Mortgage Market Index -- EMEA Q1 2013
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=704441

The second quarter is likely to start off on a difficult note for legacy EMEA CMBS, according to the latest quarterly index report published by Fitch Ratings.

The index itself stabilised at 46.9% in April (slightly up from 46.6% in January). Looking ahead, however, suggests downward pressure. Fitch notes that 23 CMBS loans mature this month alone before seeing a bit of a reprieve for the remainder of the quarter (four loans set to mature in May and June). Fitch expects few to manage to repay in an orderly fashion as borrowers have been thwarted by high loan-to-value (LTV) ratios.

'21 maturing loans have a whole loan Fitch LTV above 80%, making refinancing unlikely,' said Mario Schmidt. 'Additionally, six loans have only two to three years left until investors are due their money back, which narrows the scope for further restructuring.'

In a sign of enduring weakness in legacy CMBS loans, only nine of 36 loans maturing between January and March 2013 have so far managed to pay off. Formal maturity extension was agreed to on four loans (ranging between three and 18 months). 'Where forbearance remains on the table, we expect this to be agreed on steadily declining time frames,' said Schmidt.

The EMEA Commercial Mortgage Market Index is part of Fitch's quarterly structured finance index reports. The EMEA Commercial Mortgage Market Index is available at 'www.fitchratings.com' or by clicking on the above link.

Additional information is available at www.fitchratings.com.

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Contacts

Fitch Ratings
Mario Schmidt, +44 20 3530 1042
Associate Director
Fitch Ratings Limited, 30 North Colonnade, London E14 5GN
or
Euan Gatfield, +44 20 3530 1157
Managing Director
or
Media Relations:
Sandro Scenga, New York, +1 212-908-0278
Email: sandro.scenga@fitchratings.com

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Contacts

Fitch Ratings
Mario Schmidt, +44 20 3530 1042
Associate Director
Fitch Ratings Limited, 30 North Colonnade, London E14 5GN
or
Euan Gatfield, +44 20 3530 1157
Managing Director
or
Media Relations:
Sandro Scenga, New York, +1 212-908-0278
Email: sandro.scenga@fitchratings.com