The credit ratings agency says the Toronto-based manager faces a 'severe test' meeting repayments as interest rate costs on the securitised loan soar.
London skyline against the sunrise
The loan servicing firm is understood to have appointed Investec to market it to prospective buyers.
The US manager says it is on track to meet repayments, despite rating agency warnings about the impact of market conditions. 
The rating agency says refinancing risk is particularly severe for sterling-denominated loans within securitisations.
The survey shows widespread, albeit measured, pessimism around commercial real estate in the coming year.
Aareal Capital Corp last week originated a $370m green loan for SL Green Realty Corp, a frequent CMBS borrower.
The repricing in global financial markets since Russia’s invasion of Ukraine in February has put upward pressure on financing costs in Europe’s real estate sector.
The CMBS market saw record issuance in the first two months of the year.
Market participants say the volatility seen in financial markets is only dealing glancing blows to the US CMBS market.
Conduit deals accounted for just 19% of private label issuance in 2021, down from 45% in 2020 and 81% a decade ago.

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