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CMBS Delinquency Could Peak at 12%

NEW YORK CITY-Fitch Ratings says delinquencies won't peak until 2012, with an increased number of loans coming due over the next two years.

By Paul Bubny | Updated on January 11, 2010

NEW YORK CITY-US CMBS delinquencies won’t peak until 2012, and may reach 12% of CMBS loans, Fitch Ratings said in a report Monday. The ratings agency says 2009 closed with the delinquency rate at 4.71%, up 42 basis points from the end of November.

“Though delinquencies have increased approximately five times from a year ago, they may not peak until ’12,” Fitch managing director Mary MacNeill says in the report. “An increased number of loans are coming due over the next two years that will result in delinquencies possibly peaking at 12%.”

All five property types have seen a year-over-year increase in delinquencies of over 195%, Fitch says. They range from multifamily, with a 196% increase, to hotel, which soared 1,175% over the past 12 months.

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