Fitch: Corrected U.S. CMBS Loans Leaving Investors Guessing

NEW YORK, NY--Many  specially serviced U.S. CMBS loans are returning to performing status without  current  financial  data,  leaving  investors in the dark over the property’s  performance, according to Fitch Ratings in its latest U.S. CMBS newsletter.

Fitch  reviewed  a  slew of loans that returned to master servicing in July

and  August  and  found limited financial reporting since prior to the loan

transferring  to special servicing. Fitch also found that approximately 60%

of  the  loans  in  special servicing classified as current on debt service

payments have not reported year-end 2010 financial data.

'That   special  servicers  are  not  collecting  operating  statements  on

specially  serviced loans and reporting them through the master servicer is

disconcerting,' said Adam Fox, Senior Director.

 Fitch has asked several of the larger special servicers to provide business plans for a sample of recently corrected loans where recent financials were not reported.

Additional  information  is available in Fitch's weekly e-newsletter, 'U.S. CMBS  Market  Trends',  which  also  contains  recent rating actions and an overview  of  newly  released  CMBS  research, including Fitch presales and Focus  reports.  The  link  below enables market participants to sign up to receive future issues of the E-newsletter:

 

'http://www.magnetmail.net/forms/display_form.cfm?fid=22908&mid=929091&rid=297925736&rtype=mm&uid=Fitch

Contact:

Adam Fox

Senior Director

+1-212-908-0869

Fitch, Inc., One State Street Plaza, New York, NY 10004

Mary MacNeill

Managing Director

+1-212-908-0785

Media   Relations:   Sandro   Scenga,   New  York,  Tel:  +1  212-908-0278:

sandro.scenga@fitchratings.com.

Additional information is available at http://www.fitchratings.com/