Delinquencies on loans held in commercial mortgage-backed securities (CMBS) climbed to a new record high this past month, according to the latest index results from ""Fitch Ratings"":http://www.fitchratings.com. But the company's analysts say the rising influx of new issuance bonds may help to stem future late-pay increases.
The New York-based ratings agency reports that late-pays rose 17 basis points to close out February at 8.76 percent. That surpasses the previous high-water mark reported by[IMAGE] [COLUMN_BREAK]
Fitch in September 2010 when the agency recorded a CMBS delinquency rate of 8.66 percent.
""Though the pace of monthly defaults remains elevated, U.S. CMBS delinquencies may be showing preliminary signs of stabilization,"" said Mary MacNeill, Fitch managing director. ""A projected spike of new issuance will help to offset paydown and liquidations in 2011 and thus slow the shrinkage of Fitch's rated portfolio.""
New delinquencies in February totaled $2.6 billion, including five Fitch-rated loans greater than $100 million. Each of these loans had already been in special servicing due to an imminent default.
According to Fitch's report, the multifamily sector continues to claim the highest delinquency rate as it rose to 17.58 percent in February, with hotel delinquencies holding onto the No. 2 spot among the five major property types at 14.33 percent.
The industrial sector carried a 9.40 percent delinquency rate as of the end of February; retail delinquencies represented 7.04 percent; and past due CMBS loans on office spaces came in at 5.85 percent.