NEW YORK CITY—Loss severities ticked up slightly for US CMBS year-over year in 2013 while the pace of loan resolutions fell, according to Fitch Ratings in its latest annual study of CMBS loan losses. The study, released Monday, showed that retail posted the worst numbers out of the major property types.
Average loss severities rose to 51.2% in 2013 from 50.5% in 2012. “Special servicers are continuing to resolve many over-leveraged CMBS loans with most of them still coming from the peak years of 2005-2007,” says Mary MacNeill, managing director at Fitch. The ratings agency expects the pace of CMBS loan resolutions to remain constant this year, while average loss severities should remain stable compared to 2013.
Special servicers resolved 872 loans last year, totaling $16.4 billion in Fitch-rated That represented a decrease of more than 28% by number when compared to the 1,219 loans totaling $16.6 billion resolved in 2012.
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Paul Bubny
Paul Bubny is managing editor of Real Estate Forum and GlobeSt.com. He has been reporting on business since 1988 and on commercial real estate since 2007. He is based at ALM Real Estate Media Group's offices in New York City.
