Delinquencies on U.S. commercial mortgage-backed securities (CMBS) declined for the fourth straight month in September, according to the latest index results from Fitch Ratings.
Fitch Ratings reports that CMBS late-pays fell two basis points last month to 8.37% from 8.39% in August. Delinquency rates moved across all major property types last month, with continued improvement in the rates for the hotel sector (10.24%, down from 10.82% in August) and the multifamily sector (9.95%, down from 10.18%).
However, there was a modest increase in the office sector (8.83%, up from 8.72% in August) and retail (7.48%, up from 7.43%). The industrial rate remained somewhat volatile – 9.03%, up from 8.72% in August – but Fitch Ratings attributed that to ‘industrial's smaller denominator and tendency toward lumpier portfolio loans.’
Fitch Ratings' delinquency index includes 2,252 loans totaling $32.6 billion that are currently at least 60 days delinquent, in foreclosure or real estate owned, or considered non-performing matured out of the outstanding rated universe of approximately 30,700 loans comprising $389 billion. The index excludes loans that are 30 to 59 days delinquent, which totaled $2.15 billion in September (compared with $2.23 billion in August).