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CMBS Conduit Ratings Remain Stable; Downgrades are Moderating
North American conduit CMBS rating performance remains broadly resilient, although credit divergence across vintages and rating categories has become more pronounced, Fitch Ratings said Tuesday Affirmations continued to represent the majority of rating actions, averaging 80% by class count since 2023. Including classes that paid in full (PIF), 87% of all rating actions have been affirmations or PIF over the same period.
Downgrades are moderating, declining to 13.9% as of March. They peaked at 15.1% in 2025, driven by asset performance and valuation deterioration, rising delinquencies and Fitch’s proactive risk-based reviews. Ninety-one percent of downgrades between 2012 and the first quarter of 2026 stemmed from pre-pandemic vintages.
Investment-grade classes remain the most stable, Fitch said in its North American CMBS Conduit Ratings Transition Monitor: June 2026. Eighty-six percent have PIF or maintained their original rating and only 2.5% of classes originally rated ‘AAAsf’ have been downgraded since 2012.
- ◦Financing
