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.

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