"Transfers to special servicing of larger loans are occurring before borrowers default on payments," says Susan Merrick, managing director and US CMBS group head at Fitch, in a release. "Newly delinquent large loans are rarely a surprise."

Of the 20 largest loans in the Fitch index, 18 were transferred to special servicing on average 9.3 months prior to becoming 60 days delinquent, and ranged from one to 80 months prior to delinquency. The agency says servicers frequently are transferring loans before delinquency for imminent default when borrowers either request payment relief or notify the servicer of their inability to remain current. Loans are also being transferred when there are significant performance declines that indicate likely future delinquency, Fitch says.

Leading the way in the Moody's index are hotel properties; the delinquency rate on hospitality-based loans rose 160 bps during November to 7.8%. The multifamily sector increased more than 90 bps to end the month at 7.4%. Industrial-backed loans increased 28 bps to 3.11% in November, while office property delinquency rose 25 points to 2.95%.

In its Structured Finance Outlook report issued earlier this month, Fitch says its main concerns for CMBS in 2010 remain "protracted illiquidity and refinance risk." The agency says it expects the loan delinquency rate to hit 6% by the end of the first quarter next year, and peak at 12% by the end of 2012.

For CMBS of more recent vintage, losses will remain elevated, says Fitch, which is also anticipating downgrades of pre-2006 securities into next year. However, says managing director Bob Vrchota in a release, the magnitude of downgrades for earlier-vintage CMBS is expected to be less severe "due to seasoning, defeasance and the loans generally not underwritten as aggressively as those at the peak of the market."