The Fitch Ratings' US CMBS delinquency rate plummeted 22 basis points to 3.59% in July from 3.81% in June, as $1.7 billion in loans were resolved and fewer loans were delinquent.
The firm noted that most loan resolutions were in the hotel sector, which accounted for $958 million of the total, followed by retail at $524 million. The two largest resolutions were hotels: the $231 million Hammons Hotel Portfolio, which had been delinquent in June 2020 and was modified in May 2021, became current, and the $160 million Sheraton Grand Nashville Downtown loan was brought current using proceeds from the hotel's sale in June.
"Borrowers continue to bring loans current as property cash flows improve, although some are still receiving debt relief," Fitch noted in a statement breaking down July data.
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