Commercial Mortgage Debt in Distress Surges 320%, Moody’s Says
August 25, 2020 | John Gittelsohn | Bloomberg
(Bloomberg) — More than $54.3 billion in U.S. commercial mortgage backed securities have been transfered to loan workout specialists mostly because of payment delinquencies, a 320% increase since the start of the Covid-19 pandemic, according to Moody’s Investors Service.
Hotel and retail properties, the sectors hit hardest by restrictions on travel and public gatherings to reduce virus transmissions, make up the vast majority of the debt transferred to special servicers.
“These loans currently account for 89% of the special servicing balance, though loans for mixed-use properties, at 5%, generally include a retail and hotel component,” Keith Banhazl, a Moody’s managing director, said in a statement.
