Friday, October 14, 2011

Fitch: U.S. CREL CDOs Delinquencies Up Slightly

  
NEW YORK, NY -- After  four  consecutive  months  of  decline,  CREL CDO delinquencies rose slightly  last  month,  according  to  the  latest index results from Fitch Ratings. The full results are featured in this week’s U.S. CMBS newsletter.

CREL CDO late-pays rose to 12% from 11.6% in August. ‘Given the instability
in the broader economy, CREL CDOs delinquencies are expected to continue to
seesaw going forward,’ said Director Stacey McGovern.

In  September, asset managers reported 11 new delinquent assets.  Among the newly  delinquent  assets  were three matured balloon loans, six new credit impaired  securities,  and  two term defaults. Partially offsetting the new delinquencies were six removed assets, which included:

--One real estate-owned (REO) asset, which was sold at 38% of par;
--One mezzanine loan that was foreclosed out at a total loss; and
--Four formerly credit impaired CMBS securities.

Ratings  on  the most junior classes remain subject to volatility as losses
continue  to  accumulate.   In  September, CREL CDO asset managers reported
approximately $60 million in realized losses.

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:




Contact:
Stacey McGovern
Director
+1-212-908-0722
Fitch Inc., 1 State Street Plaza, New York, NY 10004

Karen Trebach
Senior Director
+1-212-908-0215

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

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

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