Standard & Poors said that in October the weighted average default risk for the top 70 tenants in conduit/fusion CMBS transactions stayed the same.
This comes after the average rose during the two prior months. The rating agency's CMBS Tenant Index (CTI) ended October at 21.1, remaining the same from September. However, it increased versus 20.8 in August and 20.3 in July.
The only rating action in the month was an upgrade to #68 tenant Foot Locker (to 'BB+' from 'BB'), but the move had a minimal impact on the overall index.
A higher value of the CTI implies increased credit risk. A 15.8 CTI value means a 'BB' default risk, with 'BB-' corresponding to 21.3.