Article: Fitch: More Rated CMBS Classes May Be Lowered Due To Interest Shortfalls.

Business Editors

Commercial mortgage-backed securities (CMBS) may be downgraded or placed on Rating Watch Negative at an accelerated rate due to interest shortfalls, according to an article appearing in the latest edition of the Fitch Ratings 'CMBS Real Estate Update' newsletter. While the majority of certificate classes experiencing interest shortfalls to date in Fitch-rated CMBS are unrated, more rated classes are now experiencing interest shortfalls, which has necessitated more tranches being placed on Rating Watch Negative or lowered.

'The shortfalls will most likely be caused by special servicer fees associated with the resolution of assets ...

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