Saturday, March 12, 2011

Fitch U.S. CMBS Newsletter: CREL CDO Delinquencies Nearing 15%

 NEW YORK, NY--The  monthly  climb  in  delinquencies  continues  for U.S. CREL CDOs, with late-pay  rates  now approaching 15%, according to the latest index results from  Fitch Ratings. The full results are featured in this week’s U.S. CMBS newsletter.

CREL  CDO  delinquencies  rose  to  14.6%  in February from 14% in January.
Construction  and  land  loans  continue to encompass the most late-pays by
property  type, though their collateral composition in current transactions
is far smaller than other larger property types.

 ‘Though office loans make up the largest percentage of CREL CDO collateral,
they  have  the  lowest  delinquency  rate  among all property types,’ said
Director  Stacey  McGovern.  ‘Over  time,  however,  Fitch  projects office
delinquencies in CREL CDOs to increase.’

Current delinquencies by asset type are as follows:

--Construction: 53% (2% of total collateral);
--Land: 39% (7%);
--Condo: 26% (2%);
--Multifamily: 22% (14%);
--Industrial: 14% (2%);
--Hotel: 12% (16%);
--Rated Debt: 12% (17%);
--Retail: 11% (6%);
--Office: 9% (24%);
--Other: 9% (5%).

The remaining 5% is un-invested principal cash.

Additional  information  is available in Fitch's weekly e-newsletter, 'U.S.
CMBS  Market Trends'.


Stacey McGovern
Fitch Inc., 1 State Street Plaza, New York, NY 10004

Karen Trebach
Senior Director

Media   Relations:   Sandro   Scenga,   New  York,  Tel:  +1  212-908-0278:

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