Fitch: CMBS Delinquencies Up 14%

Delinquencies in commercial mortgage-backed securities rose more than 14% in the first quarter from levels in the last quarter of 2002, according to Fitch Ratings.Fitch's delinquency index reading of 1.39% for the first quarter, up from 1.31% for the previous period, represents the largest quarterly increase in CMBS delinquencies since Fitch created the index at the end of 2001, the rating agency said. "The increase in CMBS delinquencies is directly due to a dramatic rise in delinquent hotel and office loans," said Mary MacNeill, a Fitch senior director. The delinquency balance for hotel loans grew by $270 million in the first quarter, a 37% increase from the year-end level. Fitch said it is "quite certain" that delinquencies in the hotel sector will continue to rise, given the number of hotel loans Fitch analysts have under review. The delinquent office loan balance grew by 30% in the first quarter, from $200 million to $260 million, the rating agency said. Within the other property sectors, retail and industrial delinquent balances grew by 5% and 7%, respectively, in the first quarter. Delinquent multifamily loans declined by 4%. Fitch can be found online at http://www.fitchratings.com.