Fitch U.S. CMBS VintageView: 2005 & 2007 Loans of Concern Up on GGP & Weak Hotels.NEW YORK New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of -- The inclusion of SPE SPE - Software Practice and Experience borrowers within General Growth Properties General Growth Properties (NYSE: GGP) is a publicly traded real estate investment trust in the United States. It is based in Chicago, Illinois. History The company was founded by two brothers, Martin and Matthew Bucksbaum, in 1954. (GGP GGP GPS (Global Positioning System) Guidance Package GGP Gateway-Gateway Protocol GGP Gotta Go Pee GGP Global Geodynamics Project GGP Globalization, Growth and Poverty (Canada) GGP Gotta Go Potty ) bankruptcy filing has led to an increase in Loans of Concern for fixed-rate transactions, particularly from the 2005 vintage, according to the latest U.S. CMBS CMBS See: Commercial Mortgage Backed Securities VintageView results from Fitch Ratings Fitch Ratings An international rating agency for financial institutions, insurance companies, and corporate, sovereign, and municipal debt. Fitch Ratings has headquarters in New York and London and is wholly owned by FIMALAC of Paris. . Loans of Concern from this vintage have increased from an average of 8.3% to 11%, primarily driven by 15 GGP loans totaling $1.6 billion. The 1999 vintage also saw an increase in Loans of Concern from 19.9% in April to 21.6% in May, as many of these loans are reaching maturity and are not expected to refinance in the currently stalled market. 'Weakening real estate fundamentals, led by deteriorating retail and hotel sectors, have led to a steady rise in Fitch Loans of Concern,' said Managing Director Mary MacNeill. 'Average Loans of Concern for fixed-rate deals are up 104 basis points, while significant concentrations of underperforming hotels in the floating-rate sector have led to a 560 basis points rise in Loans of Concern this month across all vintages.' Continued weakening in the hotel sector has led to a significant rise in the percentage of Loans of Concern in the 2007 vintage floating-rate transactions, averaging 42.5%. Six of the eight transactions contain 40% or higher concentrations of loans securitized by hotels and/or casino properties. To compare a transaction to other deals within its vintage, please see Fitch's special report dated May 20, 2009,'Fitch U.S. CMBS VintageView', available at www.fitchratings.com under the following headers: Structured Finance >> CMBS >> Special Reports VintageView provides delinquency and Fitch Loan of Concern comparisons between any specific transaction and the average for that transaction's vintage and transaction type. Comparisons are broken down in the following categories: --Fixed-rate multiborrower; --Floating-rate large loan; --Fixed-rate large loan; --Fixed-rate small balance; --Fixed-rate other. Fitch's rating definitions and the terms of use Terms of Use are rules set up by the owner of an intellectual property or service to govern how they may be legally used. In many cases, terms of service are used as a contractual agreement between a company and users of a service they provide. of such ratings are available on the agency's public site, www.fitchratings.com. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures Policies and Procedures are a set of documents that describe an organization's policies for operation and the procedures necessary to fulfill the policies. They are often initiated because of some external requirement, such as environmental compliance or other governmental are also available from the 'Code of Conduct' section of this site. |
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