Fitch: Katrina-Linked Overdues Still Very High

Hurricane Katrina-related delinquencies have dropped to just over a third of their peak but are still 3.5 times higher than pre-storm levels, according to Fitch Ratings.The rating agency said its delinquency index for loans collateralizing U.S. commercial mortgage-backed securities fell 4 basis points, to 0.55%, in August. The majority of outstanding Katrina-related delinquencies are located in Louisiana, mostly in and around New Orleans, as the city's recovery continues to lag well behind that of other storm-affected regions, said Patty Bach, a Fitch senior director. "With New Orleans' population estimated at 215,000, less than 50% of its pre-storm level of 465,000, large sections of the city remain mostly uninhabited as flood-damaged property owners have been waiting for resolution of questions surrounding level protection and financial assistance for rebuilding," Ms. Bach said. Fitch said its seasoned CMBS delinquency index, which omits transactions with less than one year of seasoning, dropped 9 bps, to 0.69%. Fitch can be found online at http://www.fitchratings.com.