CMBS ratings remain stable in 3Q03

In its third quarter update on the CMBS market, Moody’s Investors Service said that the sector is still relatively unscathed through its cyclical downturn compared to other fixed-income markets.

In a press release Managing Director Tad Philipp said that based on the rating agency’s MOST(TM) surveillance scoring system, the vast majority of CMBS ratings remain stable. He added that 75% or more of these ratings are expected to remain unchanged during the coming year. "We continue to keep a watchful eye on the recovery in the still-fragile hotel sector," said Philipp. He also stated that the office sector, where the national vacancy rate has risen to roughly 17%, has begun to impact CMBS performance.