Bloomberg News

Fitch Says January Has Most CMBS Loans Maturing Since Crisis

January 03, 2012

(Adds comment from report in third paragraph.)

Jan. 3 (Bloomberg) -- This month will see the largest volume of European commercial mortgage-backed security debt falling due since the start of the financial crisis, Fitch Ratings said.

Thirty-six loans totaling 2.6 billion euros ($3.4 billion) are scheduled to mature in January, with most backed by non- prime assets, Fitch said in a report. A total of 10.7 billion euros of outstanding CMBS debt rated by the New York-based firm is scheduled to mature this year, almost three times the amount in 2011, according to the report.

“With many banks dealing with steeper capital requirements restricting new lending even further, pressure is mounting on borrowers -- and servicers -- approaching maturity to secure alternative refinancing,” London-based analysts Charlotte Eady and Tanisha Patel wrote in the report. “Restructuring and work- outs will ensue.”

Six of the loans due to mature this month have balances of more than 100 million euros, according to the report. A weighted average loan-to-value ratio of 98 percent for the year “suggests that most of the 2012 loan maturities will not result in timely principal redemption,” Fitch said.

To contact the reporter on this story: Namitha Jagadeesh in London at njagadeesh@bloomberg.net

To contact the editor responsible for this story: Paul Armstrong at parmstrong10@bloomberg.net


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