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COVID Overhang Threatens CMBS Refi’s
As the volume of maturities for U.S. CMBS increase over the next two years, Fitch Ratings expects the refinanceability of the loans to be curtailed by the current economic volatility, business interruption and secular shifts caused by the coronavirus pandemic.
As of July 31, only $2.4 billion of performing, non-defeased loans within the Fitch-rated U.S. CMBS 2.0 conduit and Freddie Mac universe is scheduled to mature through the remainder of 2020. Overall maturities remain fairly manageable over the next five quarters, with an additional $12.2 billion in 2021, but jumps more significantly to $21 billion in 2022.
The ratings agency reports that approximately 20% of the remaining performing 2020 maturing loan volume has already transferred to special servicing ahead of scheduled maturities for imminent default or due to borrowers seeking relief. That includes 85% of hotel loans maturing in 2020, according to Fitch’s Melissa Che and Mary MacNeill.
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- ◦Financing
