Fitch Sees Rising CMBS Delinquencies

Delinquencies of loans in commercial mortgage-backed securities monitored by Fitch Ratings rose to 1.31% in the fourth quarter, and Fitch is forecasting rising delinquencies over the coming year, according to the rating agency.In 357 Fitch-monitored transactions, loan delinquencies rose four basis points from 1.27% in the third quarter on the rating agency's CMBS Loan Delinquency Index, Fitch said. Although delinquent office loans account for only about 8% of total delinquencies, the amount of the delinquencies grew from $138 million to $200 million in the fourth quarter, Fitch said. "Fitch is monitoring the downward trend in rents in almost every property sector," said Mary MacNeill, a Fitch senior director. "We are particularly concerned about falling rents in the office sector, in combination with increasingly high vacancy rates and generous tenant work letters." Fitch can be found on the Web at http://www.fitchratings.com.