(The following statement was released by the rating agency)
Oct 12 - U.S. CMBS delinquencies declined for the fourth straight month, according to the latest index results from Fitch Ratings.
CMBS late-pays fell two basis points (bps) last month to 8.37% from 8.39% in August. Several notable loans were also paid in full this past month. While encouraging on the surface, a closer look reveals that they were paid off only after 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 with the $232 million Westin New York at Times Square, which matured in March but was not 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 retail rates modestly worsened. Current and prior month delinquency rates for each of the 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. 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: