Search
 

S&P Records Lowest Quarterly CMBS Downgrade Since 2001

NEW YORK CITY-There is so much capital chasing real estate that investors are putting funds into under performing and speculative assets, according to a report from Standard & Poors Rating Services.

By Barbara Jarvie | Updated on July 20, 2005

(To read more on the debt and equity markets, click here.)

NEW YORK CITY-Standard & Poors Rating Services has recorded its lowest quarterly level of downgrades since the fourth quarter of 2001. A company report says investors and lenders alike are flooding the CMBS marketplace with cash earmarked for real estate investments. The firm also expects US CMBS issuance volume to reach a new record in 2005, due to low interest rates, high liquidity and strong underlying real estate fundamentals.

“To achieve real estate portfolio allocation targets and desired returns, investors are funneling capital into performing as well as underperforming and speculative properties,” explains S&P credit analyst Roy Chun “As a result, loans collateralized by less than stellar properties are being aggressively refinanced, mitigating negative rating actions.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.