Fitch: U.S. CMBS Delinquencies Register Largest Ever Drop

NEW YORK--()--U.S. CMBS delinquencies posted the largest month-over-month decline in the overall rate since Fitch Ratings started its index 15 years ago, according to Fitch Ratings in its latest weekly U.S. CMBS newsletter.

The large drop came as no surprise as the Peter Cooper Village and Stuyvesant Town asset payoff was reflected in the latest remittance information. Loan delinquencies fell 109 basis points (bps) in January to 2.93% from 4.02% at year-end 2015. The last time delinquencies were below 3% was in June 2009.

Fitch expects the delinquency rate to fluctuate between 2.50% and 3% during the year. The primary reason is that maturity defaults on 2006-vintage loans, primarily those that are highly leveraged and are weaker performing, are expected to increase and liquidations of already delinquent assets are expected to continue. January resolutions of $4.8 billion overwhelmingly outpaced new delinquencies of $637 million. By balance, nearly 95% of total resolutions were REO liquidations, largely from the payoff of the Peter Cooper Village and Stuyvesant Town asset.

Rates declined for all property types; Current and previous delinquency rates are as follows:

--Retail: 4.96% (from 5.20% at YE 2015);

--Office: 3.82% (from 4.61%);

--Hotel: 3.41% (from 3.82%);

--Multifamily: 0.82% (from 4.19%);

--Industrial: 3.38% (from 3.88%);

--Mixed Use: 2.57% (from 2.73%);

--Other: 0.90% (from 0.89%).

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: 'http://pages.fitchemail.fitchratings.com/CMBSMktOptin/'

Additional information is available at 'www.fitchratings.com'.

ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.

Contacts

Fitch Ratings
Mary MacNeill
Managing Director
+1-212-908-0785
Fitch Ratings, Inc., 33 Whitehall Street, New York, NY 10004
or
Melissa Che
Director
+1-212-612-7862
or
Media Relations:
Hannah James, +1 646-582-4947
hannah.james@fitchratings.com
Sandro Scenga, +1 212-908-0278
sandro.scenga@fitchratings.com

Contacts

Fitch Ratings
Mary MacNeill
Managing Director
+1-212-908-0785
Fitch Ratings, Inc., 33 Whitehall Street, New York, NY 10004
or
Melissa Che
Director
+1-212-612-7862
or
Media Relations:
Hannah James, +1 646-582-4947
hannah.james@fitchratings.com
Sandro Scenga, +1 212-908-0278
sandro.scenga@fitchratings.com