CMBS Maturations Lead to Refinancing

CONCORD, CA—A significant number of CMBS loans securitized in the 2005 to 2007 time period will be maturing through 2017.  As one measure of the volume of CMBS due to mature between now and 2017, consider that Fitch Ratings says about one-third or 35%, of its rated universe is coming due during the next three years.

Furthermore, some $6 billion of loans scheduled to mature next year are showing default. The ratings agency anticipates that many of the peak-vintage loans face the prospect of being unable able to refinance at their respective maturity dates without additional capital. Furthermore, “potential higher interest rates later this year may put additional stress on their ability to refinance,” according to a Fitch report.