Fitch: Large Hotels Lead Loans Of Concern For U.S. CMBS

newly defaulted loans greater than $100 million have entered special servicing, according to [u][link=]Fitch Ratings[/link][/u]. Recent defaults include two hotel portfolios: Red Roof Inn and Extended Stay. Since Fitch's last update on commercial mortgage-backed securities special servicing in April, $17.4 billion in Fitch-rated loans have entered special servicing, which does not include the Extended Stay Portfolio, which, on its own, totals over $4 billion. ‘Four of the 10 largest delinquent loans have experienced appraisal reductions as a result of value declines, indicating that losses may be significant in their respective deals,’ says Managing Director Mary MacNeill. ‘Of over 2,000 specially serviced loans, 64 have balances in excess of $100 million.’ Fitch has classified over $75 billion, or 18%, of its rated U.S. CMBS portfolio as loans of concern. Recent vintage loans account for over 11% of the $75 billion. SOURCE: [link=]Fitch Ratings


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