Commercial mortgage-backed securities delinquencies could temporarily rise as a result of the California wildfires, but there are unlikely to be any significant long-term effects, according to Fitch Ratings.Risks to CMBS collateral "at this point are minimal," Fitch said. "The bulk of properties destroyed by the fires have been residential, and past experience with these types of wildfires indicates that commercial property typically accounts for approximately 20% to 25% of insurer losses." The fires' effect on CMBS "would most probably be in the form of early loan payoffs," the rating agency said. Fitch can be found online at http://www.fitchratings.com.
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