The lowering of CMBS tenant credit that started in April has continued to worsen with the Standard & Poor’s downgrade of J.C. Penney, according to the rating agency’s structured finance credit review emailed this morning. S&P said that the weighted average tenant rating is now close to ‘BB-‘.
In other commercial real estate indicators, S&P added that the U.S. hotel revenue per available room or RevPAR fell 0.8% year-over-year for the week ending July 7. S&P attributed the decrease to the mid-week July 4 holiday. The RevPAR is used as a hotel sector performance metric calculated by multiplying a hotel's average daily room rate by its occupancy rate.