NEW YORK CITY—A little more than a year ago, Fitch Ratings expressed concern over the quality of the underwriting in many of the sizable securitizations that were being announced. “Large loan CMBS deals of late are coming to market with some average assets and aggressive assumptions,” Huxley Somerville, CMBS group head at the ratings agency, said at the time. “In fact, the large loan CMBS landscape is changing so dramatically that Fitch is questioning much of what it’s seeing.” The credit enhancement, Fitch reported, was insufficient to achieve AAAsf ratings.

This year, Somerville and his team at Fitch have a new worry. Although the quality of the properties has improved, the absolute level of debt on large loans issued this year pose the risk now.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.