Close to three dozen bonds from close to 20 commercial mortgage-backed securities transactions have incurred principal writedowns and had their ratings slip to D, according to Fitch Ratings.
There previously were triple-C, double-C or single-C ratings on all 35 downgraded bonds from 19 deals suggesting defaults were likely, Fitch said in a ratings report Monday.
Fitch also affirmed the very low ratings of 42 distressed bonds in 10 transactions.
“Recovery prospects are very low for the remaining bonds in these transactions, with the exception of one transaction where recent dispositions have resulted in only defeased collateral remaining in the trust,” Fitch says.
Fitch also withdrew the ratings of four bonds in one transaction where the remaining classes had fallen to zero.