Property valuers and loan servicers may be too cautious when reviewing the European commercial property markets and the approach may encourage excessive conservatism to be built into valuations and work-out strategies, said Fitch Ratings.

Given the continued inactivity in European commercial property markets, Fitch is concerned that the more conservative valuations could impact the credit profile of European CMBS by encouraging special servicers to dispose of properties at depressed prices when resolving distressed loans.

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