Fitch: 3Q'16 U.S. CMBS Cumulative Defaults Fall, Maturity Defaults Rise

CHICAGO--(BUSINESS WIRE)-- Loan defaults on the whole fell slightly last quarter for U.S. CMBS, though maturity defaults are on the rise according to Fitch Ratings in its latest weekly U.S. CMBS newsletter.

Fitch saw a decline in loans defaulting during their term in 3Q'16 compared to 3Q'15. However, loans that defaulted at maturity increased during these same time periods. In 3Q'16, 39 loans totaling $387 million newly defaulted during their loan term, compared to 3Q'15 when 38 loans totaling $779.1 million defaulted. Additionally, 92 loans, with an original securitized loan balance of $1.75 billion, did not refinance at their 3Q'16 maturity date, compared to 83 loans totaling $943.8 million that did not refinance at maturity in 3Q'15.

Retail properties were the largest contributor to new 3Q'16 defaults by loan balance, with 20 loans comprising 38% of 3Q defaults. Office properties were the second largest contributor with 5 loans at 32%, with one large loan being the primary driver. Seven multifamily loans defaulted comprising 15% of total 3Q defaults and four industrial loans defaulted representing 10% of total defaults. Three hotel defaults make up the remaining 5%.

Additional details on last quarter's defaulted CMBS loans are available in Fitch's weekly e-newsletter, 'U.S. CMBS Market Trends', which also contains recent rating actions and an overview of newly released CMBS research, including Fitch presales and Focus reports. The link below enables market participants to sign up to receive future issues of the E-newsletter:

'http://pages.fitchemail.fitchratings.com/CMBSMktOptin/'

Additional information is available at www.fitchratings.com.

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Source: Fitch Ratings

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