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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.
****
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Moody's: US CMBS loan delinquencies slip to 9.30%
No Related Data.
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