Finance
CMBS
Jul 31, 2009
With close to $50 billion in American CMBS now in special servicing, that number may approach $100 billion by year’s end, according to a new report by Fitch Ratings. That number represents approximately 12 percent of total outstanding CMBS.
“The resources of special servicers will continue to be stretched, which, will intensify scrutiny on their preparedness,’ predicted Fitch managing director Stephanie Petosa. “Compounding the problem is that many of these loans expected to default are large and complicated loans.”
Despite the growth in specially serviced loans, Fitch does not expect the same rate of growth on CMBS delinquency rates. Fitch is projecting delinquencies on U.S. CMBS to eclipse 5 percent by the end of 2009.
With close to $50 billion in American CMBS now in special servicing, that number may approach $100 billion by year’s end, according to a new report by Fitch Ratings. That number represents approximately 12 percent of total outstanding CMBS.
“The resources of special servicers will continue to be stretched, which, will intensify scrutiny on their preparedness,’ predicted Fitch managing director Stephanie Petosa. “Compounding the problem is that many of these loans expected to default are large and complicated loans.”
Despite the growth in specially serviced loans, Fitch does not expect the same rate of growth on CMBS delinquency rates. Fitch is projecting delinquencies on U.S. CMBS to eclipse 5 percent by the end of 2009.
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