Fitch: CMBS Late Pays Declined

As of the latest reading, delinquencies on Fitch-rated commercial mortgage-backed securities loans have fallen 14 basis points from the second-quarter rate, according to Fitch Ratings.The rating agency said its CMBS loan delinquency index now stands at 1.42%. "A decline in delinquencies has been noted in all property types except office and industrial," said Mary O'Rourke, a Fitch senior director. "Overall, even with the addition of $25 million newly defaulted mixed-use office/retail loans, delinquencies were down by more than $164 million." If unseasoned transactions are removed from the calculations, the new index stands at 1.68%, compared with 1.84% at last reporting, Ms. O'Rourke said. Office and industrial loan-backed CMBS saw increased defaults, 2.5% and 6.4% respectively, but both hotel and health care-backed loans showed improvements, Fitch said. The rating agency also saw delinquencies on retail-backed loans decline, but Fitch says the sector "remains vulnerable to further deterioration." The rating agency can be found online at http://www.fitchratings.com.