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Fitch U.S. CMBS Newsletter: CREL CDO Delinquencies Dip Slightly to 12.8%

NEW YORK, Nov 12, 2010 (BUSINESS WIRE) -- The increased incidence of loan extensions has helped precipitate a slight drop in U.S. CREL CDO delinquencies, according to the latest index results from Fitch Ratings. The full results are featured in this week's U.S. CMBS newsletter.

'Many new loan extensions are short term remedies designed to allow added time for further negotiation of pending loan modifications,' said Director Stacey McGovern.

CREL CDO delinquencies fell slightly to 12.8% last month (from 12.9% in September). Total loan extensions in October were reported at 58 in the month, which is significantly higher than the 2010 monthly average of 37 extensions.

CREL CDO asset managers reported approximately $98 million in realized losses from the disposal of distressed assets in October. 'The risk still remains for realized losses to increase if real estate trends backpedal, though they have been in a relative holding pattern for the last few months,' said McGovern.

Total realized losses across the CREL CDO universe total over $1.7 billion (or approximately 7.6% of the collateral balance).

Additional information is available in Fitch's weekly e-newsletter, 'U.S. CMBS Market Trends'. The link below enables market participants to sign up to receive future issues of the E-newsletter: 'http://www.magnetmail.net/forms/display_form.cfm?fid=22908&mid=929091&rid=297925736&rtype=mm&uid=Fitch' 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.

SOURCE: Fitch Ratings CONTACT: Fitch Inc. Stacey McGovern, +1-212-908-0722 Director 1 State Street Plaza, New York, NY 10004 or Karen Trebach, +1-212-908-0215 Senior Director or Media Relations Sandro Scenga, +1-212-908-0278 sandro.scenga@fitchratings.com Copyright Business Wire 2010 -0- KEYWORD: United States

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