Fitch: Specially Serviced U.S. CMBS May Reach $100B by End-2009

NEW YORK, NY-July 30, 2009: With close to $50 billion in U.S. CMBS now in special servicing, that number may approach $100 billion by the year end, representing approximately 12% ($96 billion) of total outstanding CMBS, according to Fitch Ratings in a new report.

"The resources of special servicers will continue to be stretched, which will intensify scrutiny on their preparedness,’ said Managing Director Stephanie Petosa. "Compounding the problem is that many of these loans expected to default are large and complicated loans."

Despite the growth in specially serviced loans, Fitch does not expect the same rate of growth on CMBS delinquency rates.

Fitch is projecting delinquencies on U.S. CMBS to eclipse 5% by the end of 2009. Fitch monitors servicing portfolio volume and is provided year-end and quarterly data from Fitch-rated special servicers.

The data in the report includes information for Fitch and non-Fitch rated CMBS transactions.

Fitch will continue to measure servicer performance through the collection and analysis of management reports from its rated servicers and come to the market with timely commentary as developments unfold.

Contacts:

Stephanie Petosa +1-212-908-0720,

Alyson Weems +1-212-908-0305, New York or

Richard Carlson +1-312-606-2373, Chicago.