CMBS Late-Pays Could Drop Below 4% This Year

NEW YORK CITY-The delinquency for CMBS in the US could fall below 4% by year’s end, about half the late-pay rate seen at the start of 2013 and the lowest since October 2009, says Fitch Ratings. That’s provided the pace of resolutions continues and new issuance remain strong, in proportion with portfolio runoff.

Further, locally based Fitch assumes resolutions for loans less than $100 million would remain at their 2013 pace, while resolution timing for loans greater than $100 million will be considered on a case-by-case basis. The expected 4% mark also assumes that the $3-billion loan on the Peter Cooper Village/Stuyvesant Town multifamily complex in Manhattan’s Midtown South will not be resolved this year.