As the real estate market rides through the current downturn in the economy, Fitch Ratings is anticipating defaults and loan modifications to continue at least in the short term, and as an result of this, the rating agency also predicts that the number of interest shortfalls will likely rise in CMBS deals.

"With many REO loans resolving and a lot more loans going delinquent, there has been an increased volume of shortfalls that could potentially cause some rating actions to occur," said Erin Stafford, a Fitch analyst.

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