Search
 

Problem CMBS Loans Up 7% in Two Months

NEW YORK CITY-Fitch Ratings says it's designated nearly 6,000 loans, or 17% of its rated US CMBS portfolio, as loans of concern.

By Paul Bubny | Updated on September 03, 2009

NEW YORK CITY-With 432 commercial real estate loans totaling approximately $5.2 billion added to the tally, Fitch Ratings’ CMBS “loans of concern”–those that are in special service or whose performance is declining–increased by 7% between June 1 and July 31, the agency reported Thursday. Deteriorating property performance and increasing CMBS defaults were the key drivers, according to Fitch.

A significant new entry to the list is the $227.9-million Resorts International Casino Portfolio loan, secured by a three-hotel/gaming portfolio in Atlantic City and Robinsonville and Tunica, MS. Fitch says it transferred to special servicing on July 23 after the borrower failed to make the July payment, citing significant declines in cash flow at the properties, although the loan is performing.

“Properties directly tied to consumer spending, such as hotels, are the first to exhibit signs of performance declines,” says Adam Fox, Fitch senior director, in a release.

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.