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S&P: CMBS Credit Will Improve Ahead of Maturity Wave

NEW YORK CITY-With pressure exerted by the more aggressively underwritten loans from the last cycle's peak, the fixed-rate maturity payoff rate for 2014 could be less than the results that were achieved in 2013.

By Paul Bubny | Updated on February 12, 2014

NEW YORK CITY-The subtitle of a Standard & Poor’s Ratings Service report on the CMBS credit outlook speaks volumes: “The Calm Before the Maturity Storm.” Between 2015 and 2017, about $287 billion of loans are due to mature, and 2014 is likely to see further improvement in the credit landscape, although possibly less of it than we saw in 2013.

This year, with the Federal Reserve going into “tapering mode,” long-term interest rates are expected to rise, S&P notes. This could affect borrower costs and behavior, capitalization rates and refinancing prospects.

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