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Flooding Creates Uncertainty for Many Properties

Morningstar believes that 1,529 properties, with an allocated property balance of $19.4 billion, may be at elevated risk, and most of the properties are in Harris County, which suffered catastrophic flooding.

By Lisa Brown | lisabrown | Updated on September 01, 2017

Flooding Properties are at increased risk because of flooding caused by Harvey (credit: weather.com).

HOUSTON—The water levels are decreasing but in turn, damage levels are rising as the breadth of the storm is exposed. Morningstar Credit Ratings published an alert this week regarding the flooding in Texas. The fear is that 1,529 properties backing CMBS loans could be at risk.

Morningstar believes that these properties with an allocated property balance of $19.4 billion may be at an increased risk because of major flooding caused by Hurricane Harvey. These properties, backing 1,277 loans in CMBS, are in the 18 Texas counties that the Federal Emergency Management Agency/FEMA, declared major disaster areas. Most of the properties, with a balance of $16.24 billion, are in Harris County, which suffered catastrophic flooding, according to the New York Times.

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