Search
 

Moody's, Fitch Cut Dozens of CMBS

NEW YORK CITY-More than 40 classes of 2006- and 2007-vintage CMBS were assigned a negative outlook by Fitch Thursday.

By Paul Bubny | Updated on August 20, 2009

NEW YORK CITY-Fitch Ratings has assigned a negative outlook to more than 40 classes of 2006- and 2007-vintage CMBS from JPMorgan Chase and Banc of America, while Moody’s on Thursday downgraded a pair of CMBS classes issued by Merrill Lynch in Canada two years ago. The ratings actions, which also included affirmations by both agencies on several classes, occur two weeks after Moody’s reported a monthly increase of 345 basis points in the delinquency rate for conduit and fusion CMBS loans.

On Thursday, Fitch took a total of 27 classes of JPMorgan Chase Commercial Mortgage Securities Corp. pass-through certificates from ’06 and ’07 off its ratings watch list and assigned them a negative outlook. The agency says in a release that its forecasts potential losses of 6.8% for the 2006-CIBC17 series and 7.3% for the 2007-CIBC20, “should market conditions not recover.”

The downgraded ’06 classes from JPMorgan represent $460 million in loans, while the downgraded ’07 classes total $351.5 million. According to Fitch, two of the top 15 ’06 loans and 12 of the top 15 ’07 loans, representing 12.4% and 47.9% of their respective pools, are expected to default during the term or at maturity, with loss severities ranging from approximately 1% to 18%.

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.