It’s looking like some heavy weather in the forecast for legacy CMBS: over the next 12 months, $24 billion in securitized CRE loans rated by Fitch Ratings is set to mature. The New York City-based ratings agency said Friday that as much as 41% of the 1,900 fixed-rate conduit loans coming due, or 59% of the total by balance, would be unable to refinance.
Unsurprisingly, the numbers look worse for CMBS loans originated at the height of the market. Fitch says that based on its surveillance methodology, which assumes a debt service coverage ratio of less than 1.25x, 80% of all circa-‘07 loans that mature in the next 12 months would be unable to refinance at maturity. By contrast, just 27% of the seasoned 10-year loans from 2002 will face that quandary.
Read more...GlobeSt.com - A Trying 12 Months Ahead for Maturing CMBS - Daily News Article
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.