Upcoming CMBS loan maturities in March and April will result in an increase in the number of loans in standstill or going through a workout process, says Fitch Ratings.
The ratings agency said two loans will mature in March and a further 10 in April.
“Of the €8bn of European CMBS loans that were scheduled to mature prior to March 2010, 69% by balance is still outstanding,” said Charlotte Eady, director in Fitch’s European CMBS team.
“Only 6% were paid in full either at or shortly after loan maturity, while the remaining 24% were prepaid, typically prior to the onset of the credit crisis.”
Fitch said half of all European CMBS loans that have passed their maturity dates and are still outstanding are in standstill or going through a workout process.
The other half have had their maturity dates extended.
Gioia Dominedo, senior director in Fitch’s CMBS team, said: “Fitch expects to continue to see loan extensions being used as an alternative to or as part of a loan workout.”
