(The following statement was released by the rating agency)
Oct 12 - U.S. CMBS delinquencies declined for the fourth straight month, according to thelatest index results from Fitch Ratings.
CMBS late-pays fell two basis points (bps) last month to 8.37% from 8.39% inAugust. Several notable loans were also paid in full this past month. Whileencouraging on the surface, a closer look reveals that they were paid off onlyafter refinancing delays.
For instance, the $275 million CalWest Industrial Portfolio matured in June,though the payoff did not take place until Aug. 30. Delays also took place withthe $232 million Westin New York at Times Square, which matured in March but wasnot paid off until this past month.
Delinquency rates moved predictably across all major property types last month.The hotel and multifamily rates continued improving, while the office and retailrates modestly worsened. Current and prior month delinquency rates for each ofthe major property types are as follows:
--Hotel: 10.24% (from 10.82% in August); --Multifamily: 9.95% (from 10.18%); --Industrial: 9.03% (from 8.54%); --Office: 8.83% (from 8.72%); --Retail: 7.48% (from 7.43%).
Additional information is available in Fitch's weekly e-newsletter, 'U.S. CMBSMarket Trends', which also contains recent rating actions and an overview ofnewly released CMBS research, including Fitch presales and Focus reports. Thelink below enables market participants to sign up to receive future issues ofthe E-newsletter: