Fitch Ratings report loan delinquencies in U.S. commercial mortgage-backed securities in November fell to the lowest level in 10 years, aided by the infusion of strong new-issuance activity in the market.
According to Fitch loan delinquencies in Fitch-rated CMBS deals dropped to 1.52% in November from 1.66% in October, representing the lowest market since February 2009.
The percentage fell from the addition of nine transactions totaling $8 billion that entered the market in October, outpacing a portfolio runoff of $2.3 billion, according to the agency.
The majority of delinquencies are from legacy assets, Fitch noted: of the remaining $9 billion in outstanding CMBS 1.0 assets issued prior to 2009, about $4.1 billion is delinquent. Excluding those loans, the CMBS delinquency rate on post-crisis deals would only be 0.61%.
Retail remains the most troubled sector with a 3.97% delinquency rate for November; the next highest property type is office at 1.67%. Both rates were declines from October, as were hotels (1.42% from 1.44%), mixed use (0.83% from 0.86%), and industrial (0.47% from 0.86%).
Fitch's delinquency index includes 416 loans totaling $6.9 billion, according to the agency, that are currently at least 60 days delinquent, in foreclosure or REO, or considered non-performing matured. Fitch’s outstanding rated U.S. CMBS universe is comprised of 23,286 loans totaling $439 billion.
