CMBS Delinquency Rate Slowed In June

S. CMBS delinquency rate rose to 8.14% in June, according to the latest index results from [link=]Fitch Ratings[/link]. The 17 basis points increase is the smallest rise in 11 months Loans continued to transfer to special servicing at an elevated rate, with a net increase of $4.2 billion in performing specially serviced loans last month, according to Fitch. Hotels represented the only property sector that did not post a slight increase in its June delinquency rate. However, Fitch does not see this as a sign of better days ahead. ‘While delinquencies slowed for the month, this trend is not expected to continue,’ says Mary MacNeill, managing director. ‘The number of distressed properties continues to grow. If borrowers are unable to access capital for leasing costs or are unable to restructure their loans to a leverage level commensurate with sustainable property values, they may stop subsidizing debt service payments.’ SOURCE: Fitch Ratin


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