Moody's: US CMBS loan delinquencies slip to 9.30%
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Announcement:

Moody's: US CMBS loan delinquencies slip to 9.30%

Global Credit Research - 21 Feb 2012

New York, February 21, 2012 -- The delinquency rate on loans included in US Commercial Mortgage-Backed Securities (CMBS) conduit/fusion transactions slipped two basis points in January to 9.30%, according to Moody's Investors Service's Delinquency Tracker (DQT). The rate of loans in special servicing, as measured by Moody's Specially Serviced Loan Tracker, increased by one basis point in January, to 11.98%.

January was the 13th consecutive month that delinquencies in the US have been above 9%, according to Moody's.

During January, there was approximately $6.4 billion in newly delinquent loans. Although the amount was the highest one-month inflow recorded to date, it was outpaced by $7.2 billion in loans that were resolved, leading to a $0.8 billion net decrease in delinquent loans. January marks eighth of the last 11 months that the total balance of delinquent conduit loans declined. March 2011 was the first post-financial crisis month to see a decline in the delinquent universe.

With no CMBS conduit issuance in January to counterbalance dispositions, the overall CMBS universe declined by $6.5 billion to $576.3 billion. The decrease was the largest for any month since May 2009 and the fourth largest recorded.

By property type, the retail sector was the only one to record an increase in its delinquency rate during the month, up 36 points to 7.58%. This rate is the lowest among the five core property types.

Conversely, the property type with the highest delinquency rate, multifamily, saw its rate decrease the most, as it fell 68 basis points in January to 13.77%.

The two property types that recorded the highest historical delinquency rates in December, office and industrial, both experienced declines. The rate for the office sector fell 12 points to 8.53% while the rate for industrial properties fell 17 points to 11.93%.

The delinquency rate of the remaining sector, hotels, changed little during the month, falling one basis point to 12.95%.

By region, the East had the largest decline in its delinquency rate, falling 54 basis points to 7.57%, the lowest rate for any region. The workout of a single loan, 666 5th Avenue in New York City, was responsible for much of the decline.

The West and Midwest regions experienced increases in delinquency in January, the rate for the West rising 42 basis points to 8.66% and the rate for the Midwest rising 33 basis points to 10.35%.

Delinquencies in the South saw a 0.4 basis point decline in January, slipping to 11.37%.

The report "US CMBS: Moody's CMBS Delinquency Tracker, February 2012," is available on Moodys.com. In addition, Moody's publishes a weekly summary of structured finance credit, ratings and methodologies, available to all registered users of our website, at www.moodys.com/SFQuickCheck.

****

NOTE TO JOURNALISTS ONLY: For more information, please call one of our global press information hotlines: New York +1-212-553-0376, London +44-20-7772-5456, Tokyo +813-5408-4110, Hong Kong +852-3758-1350, Sydney +61-2-9270-8141, Mexico City 001-888-779-5833, São Paulo 0800-891-2518, or Buenos Aires 0800-666-3506. You can also email us at mediarelations@moodys.com or visit our web site at www.moodys.com.

Kevin Fagan
Analyst
Structured Finance Group
Moody's Investors Service, Inc.
250 Greenwich Street
New York, NY 10007
U.S.A.
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653

Tad Philipp
Senior Vice President
Structured Finance Group
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653

Releasing Office:
Moody's Investors Service, Inc.
250 Greenwich Street
New York, NY 10007
U.S.A.
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653

Moody's: US CMBS loan delinquencies slip to 9.30%
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