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CMBS Delinquencies Decline in July, Offset by Uptick in New Late-Pays
Fitch Ratings’ U.S. CMBS delinquency rate fell one basis point to 2.05% in July from 2.06% in June as continued resolutions and steady new issuance were offset by an uptick in new delinquencies. The rating agency said the pace of improvement has slowed relative to prior months as the overall rate inches closer to its pre-pandemic level of 1.31% in March 2020 and increased downside risks from deteriorating macroeconomic conditions make themselves felt.
New 60+ delinquency volume rose to $683 million in July from $343 million in June. Most were retail loans that either defaulted at maturity or were reported as non-performing matured balloon loans.
Conversely, the 30-day delinquency volume fell to $507 million from $781 million in June. Resolutions increased to $685 million in July from $465 million in June, most of which were retail and office loans.
Approximately 3.2% of the Fitch-rated U.S. CMBS universe ($17.4 billion; 674 loans) was in special servicing as of the July 2022 remittance, down from 3.5% in June. Approximately 36% by balance are performing, specially serviced loans.
- ◦Financing
