Loan Resolutions Improve CMBS Delinquency Rate: Fitch

The CMBS delinquency declined again for the third consecutive month, ""Fitch Ratings"":http://www.fitchratings.com/web/en/dynamic/fitch-home.jsp reported Friday.

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The CMBS delinquency rate fell 9 basis points (bps) in August to 8.39 percent from 8.48 percent in July. The ratings agency explained increased loan resolutions helped improve the delinquency rate, with more loans exiting the delinquency index then entering. In August, about $2 billion in loans were resolved compared to $1.7 billion in new delinquencies.

The overall delinquency rate may have fallen, but office loans were exempt from the trend, rising to 8.72 percent in August from 8.43 percent in July. Fitch stated the addition of the $678 million Skyline Office Portfolio led to a rise of 29 bps for office delinquencies.

The multifamily delinquency rate dropped 71 bps after 29 loans totaling $508 million were resolved, compared to $116 million in newly delinquent loans, according to Fitch.

The hotel delinquency rate improved monthly, falling to 10.18 percent from 10.89 percent. Fitch stated 17 loans totaling $372 million were resolved, compared to nine loans totaling $126 million becoming newly delinquent.

The industrial delinquency rate also fell, dropping to 8.54 percent from 8.68 percent.