Fitch: CMBS Late-Pays Likely to Rise

Meanwhile, delinquencies for U.S. commercial mortgage-backed securities are likely to rise from their record low as a result of Hurricane Katrina, according to Fitch Ratings.CMBS delinquencies declined from 1.07% in July to a new low of 1.0% in August, Fitch reported. "Although there is not a large concentration of properties in the Gulf Coast relative to other markets in CMBS, the ongoing crisis will make it difficult for borrowers to make their payments," said Adam Fox, a Fitch director. "While we expect master servicers to advance on assets in the near term while determining the extent of damage and insurance coverage, delinquencies will rise and more loans will be transferred to the special servicer as details emerge." The rating agency said servicers are still unable to contact borrowers in the New Orleans area. Fitch can be found online at http://www.fitchratings.com.