The vast majority of legacy CMBS loans continue to face “long-term refinancing and repayment issues”, according to Standard & Poor’s.
The rating agency’s latest European CMBS Monthly Bulletin, covering Q1 2013, said 35% of loans due in that quarter were repaid.
Of the scheduled loan maturities that were not paid, 65% had defaulted, extended, were in standstill or had yet to provide further information. Fitch estimated that only nine of 36 loans that matured between January and March 2013 had been repaid.
S&P’s bulletin said a revival in CMBS issuance had yet to benefit “the vast majority of legacy loans”, as it had “focused on certain loans that show stable performance and strong fundamentals”.
S&P CMBS analyst Rob Leach added: “To the extent that refinancing isn’t coming back to the level people could refinance at previously, there are losses to work through the system.”