NEW YORK--(BUSINESS WIRE)-- The continued turnaround of hotels helped precipitate another decline for U.S. CMBS delinquencies, according to the latest index results from Fitch Ratings. The full results are featured in this week's U.S. CMBS newsletter.

Approximately $604 million in resolved hotel-backed loans resulted in a slight drop of five basis points (bps) for CMBS late-pays, bringing the overall rate to 8.60% from 8.65%. Aside from hotel sector gains, September proved to be a quiet month for both new delinquencies and resolutions. In fact, the $1.5 billion of new delinquencies in September represents the lowest volume of new defaults in almost three years (when the index stood at 1.28% at February 2009).

After hitting an all-time high of 9.01% in July, CMBS delinquencies are now down each of the last two months.

'Roughly four years after the economic crisis began, signs of stability are slowly emerging for commercial real estate,' said Managing Director Mary MacNeill. 'Though office and retail-backed loans are lagging as expected, hotels are now benefiting from their ability to reset rates on demand, resulting in enhanced liquidity and renewed investor interest.'

Conversely, office loans fared worse last month, with 50 loans totaling $594.5 million being added to the index. Additionally, 57 retail-backed loans totaling $422.5 million were newly added.

Current delinquency rates for all property types are as follows:

--Multifamily: 15.77% (from 15.88% in August);

--Hotel: 12.42% (from 14%);

--Industrial: 10.02% (from 10.12%);

--Retail: 6.94% (from 6.77%);

--Office: 6.61% (from 6.13%).

Additional information is available in Fitch's weekly e-newsletter, 'U.S. CMBS Market Trends', which also contains recent rating actions and an overview of newly released CMBS research, including Fitch presales and Focus reports. The link below enables market participants to sign up to receive future issues of the E-newsletter:

'http://www.magnetmail.net/forms/display_form.cfm?fid=22908&mid=929091&rid=297925736&rtype=mm&uid=Fitch'

Additional information is available at 'www.fitchratings.com'

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CONTACT:

Fitch Ratings
Mary MacNeill
Managing Director
+1-212 908-0785
Fitch, Inc., One State Street Plaza, New York, NY 10004
or
Lindsay Weichert
Director
+1-212-908-0398
or
Media Relations
Sandro Scenga
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sandro.scenga@fitchratings.com

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