Fitch: Specially Serviced CMBS May Reach $100B By Year-End

lose to $50 billion in U.S. commercial mortgage-backed securities (CMBS) now in special servicing, that number may approach $100 billion by year-end, representing approximately 12% ($96 billion) of total outstanding CMBS, according to a new report from [link=][u]Fitch Ratings[/u][/link]. ‘The resources of special servicers will continue to be stretched, which will intensify scrutiny on their preparedness,’ says Managing Director Stephanie Petosa. ‘Compounding the problem is that many of these loans expected to default are large and complicated loans.’ Despite the growth in specially serviced loans, Fitch does not expect the same rate of growth on CMBS delinquency rates. Fitch is projecting delinquencies on U.S. CMBS to eclipse 5% by the end of 2009. SOURCE: [link=]Fitch Ratings


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