Fitch: CMBS Overdues Decline

Delinquencies on commercial mortgage-backed securities declined 0.02% in October to 0.93%, down from 1.27% in January, according to Fitch Ratings.The rating agency said it believes that next month's delinquency levels will reflect the effects of the recent hurricanes. "Servicer advances on hurricane-affected properties have been on the rise since September, so the repercussions of hurricanes Katrina, Rita, and Wilma are likely to be reflected in Fitch's November data," said Fitch senior director Patty Bach. A delinquency index maintained by the rating agency includes loans 60 or more days delinquent. By property type, multifamily properties represent 31.3% (by balance) of Fitch's delinquency index, followed by office properties at 18.9%, retail properties at 15.5%, and hotel properties at 14.7%. While multifamily and office delinquencies rose dramatically over the first half of the year, the third quarter showed some improvement. Retail and hotel property delinquencies have declined for most of 2005, Fitch said. The rating agency can be found online at http://www.fitchratings.com.