NEW YORK CITY-Fitch Ratings and Trepp, in separate reports, eachsay June’s 17-basis point increase in CMBS delinquencies was thesmallest since July 2009. However, Trepp points out the delinquencyrate is still the highest in CMBS history, while Fitch doesn’t seethe month’s slowdown as a precedent-setter.

'While delinquencies slowed for the month, this trend is notexpected to continue,” Mary MacNeill, managing director at Fitch,in a release. “The number of distressed properties continues togrow, and if borrowers are unable to access capital for leasingcosts or are unable to restructure their loans to a leverage levelcommensurate with sustainable property values, they may stopsubsidizing debt service payments.”

In its monthly delinquency commentary, Trepp says the rate ofincrease in delinquencies averaged 39 bps per month for the ninemonths prior to June. Before June, the smallest increase sinceSeptember 2009 was February’s 23-bps gain.