At €10 billion, 2014 refinancing will come in lower than the €16 billion of loans that matured at beginning of 2013. However the loan maturities will follow a year in which the number of loans in special servicing increased to just under 50% of Standard & Poor’s remaining CMBS universe.

“This could increase difficulties facing loans maturing in 2014, as they compete with these specially serviced loans for the limited amount of available refinancing opportunities,” the ratings agency said in a report today.

According to S&P, the delinquency rate of continental European CMBS loans is 32% in 2013; in the U.K., CMBS delinquency rate is 10% in 2013.  The number of loans in special servicing increased to 131 in 2013 (98 in end-2012), with 46 loans transferring into special servicing and 13 loans leaving special servicing.

So far, 24 of the 112 loans scheduled to mature in 2014 have prepaid, three of which prepaid with a loss, according to S&P.   “We believe that 2014 will be another difficult year for maturing CMBS loans,” said analysts in the report. “Although there has been some renewed optimism for CMBS as a whole, this has primarily benefited a small number of loans with the strongest credit characteristics, while the remaining loans have continued to struggle.”


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