Fitch Ratings says it expects the average loan-loss severity in commercial mortgage-backed securities transactions to increase to 50% this year.In addition, the rating agency expects the frequency of CMBS loan defaults to double this year. Fitch noted that this will be the second year of rising losses from CMBS defaults. In 2001, the loss severity rose to 34% from 19% the year before. Fitch said loans that remain in special servicing the longest -- particularly those in servicing for 24 months or more -- take the biggest hit. Fitch can be found online at http://www.fitchratings.com.
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