Delinquencies on U.S. commercial mortgage-backed securities (CMBS) started 2013 on a positive note with an eighth straight month of declines, according to the latest index results from Fitch Ratings.
CMBS late-pays declined eight basis points in January to 7.91% from 7.99% a month earlier, Fitch Ratings reports, adding that this marks the rate's lowest level since October 2010 when it stood at 7.78%.
In January, resolutions of $1.4 billion outpaced additions to the index of $1.1 billion. However, the Fitch-rated new issuance volume of $600 million fell short of $2.9 billion in portfolio runoff last month. The largest movement in January was the $165.7 million CVI Multifamily Apartment Portfolio (CSMC 2007-C1) dropping out of the index. The loan was modified and bifurcated in the fourth quarter of 2012 and the A-note is now reported as current, Fitch Ratings adds.
In January, the multifamily, office and hotel sectors saw their delinquency rates improve. However, the industrial and retail sectors saw their rates worsen – industrial delinquencies rose from 8.61% in December to 8.69% and retail saw a jump from 7.14% to 7.43%.