U.S. CREL CDO Late Pays May Mount Faster than Expected

U.S. commercial real estate loan collateralized debt obligation delinquencies may increase faster than expected this year, according to Fitch Ratings, New York. "With CREL CDO delinquencies increasing 1.3% on average over the last two months, the default rate for year-end 2009 could exceed Fitch's initial base expectation for the life of the transactions if this pace continues," said Fitch senior director Karen Trebach. U.S. CREL CDOs delinquencies increased to 5.4% in February from 3.8% in January, according to Fitch Ratings, New York.