Fitch Ratings

Commercial RE Braces For a Surge in Defaults 

Q109 racked up $2.6bn in US commercial mortgaged-back security (CMBS) loan defaults, compared to $3.2bn for all of 2008, signaling an expedited pace in commercial mortgage defaults is upon the industry, according to Fitch Ratings data released Thursday. “If the rate of defaults continue at this accelerated pace combined with limited issuance in 2009, the cumulative default rate will exceed 5% by year end,” says Fitch managing director Mary MacNeill.