News & Analysis

CMBS exposure to Hurricane Matthew nears $11bn: Fitch

The storm ripped through the southeastern US states last week, beginning with heavy winds and torrential rain, then leaving behind massive flooding throughout the region in its aftermath, with a death toll of at least 45 so far.

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Fitch has identified 1,345 properties across 347 Fitch-rated CMBS transactions totaling $10.65 billion in aggregate loan balance with exposure to Hurricane Matthew.

The storm ripped through the southeastern US last week, beginning with heavy winds and torrential rain and then leaving massive flooding behind, with a death toll of at least 45 so far.

hurricane-facts_0The second hurricane to impact the US this year also left millions without power and likely damaged hundreds-of-thousands of structures.

In North Carolina alone, officials say more than 100,000 structures worth at least $1.5 billion were impacted by the storm, and federal officials have granted $17.7 million to the local government in the past 10 days, according to reports.

The majority of the commercial properties tied to CMBS which Fitch identified as having exposure to the storm were securitized in CMBS 2.0 transactions.

The ratings agency today offered the following state-by-state breakdown for the deals:

-402 properties located in North Carolina (34 percent)

-304 in South Carolina (23 percent)

-251 in Virginia (19 percent)

-232 in Florida (17 percent)

-156 in Georgia (12 percent)

And, by property type:

-472 retail properties (31 percent)

-281 multifamily properties (29 percent)

-183 hotel properties (16 percent)

-110 office properties (11 percent)