European CMBS Loans Had Record Delinquency Levels in January, S&P Reports

Only 13 of 51 loans linked to European commercial-mortgage backed securities were repaid when they came due in January, according to Standard & Poor’s.

“Record numbers of loans” entered the ratings company’s delinquencies index during the month, S&P said today in its February CMBS Bulletin. It has had 102 loans on the index, through January compared with 63 a year earlier.

Less than 19 percent of loans by value were paid back when they matured in January, a total 700 million euros ($933 million) of the 3.7 billion euros due. The value of unpaid loans this year could be as high as 10 billion euros based on the January delinquencies, the New York-based unit of McGraw-Hill Cos said.

The small number of loans repaid in January “can only compound the competition for finance that borrowers of newly maturing loans will face in 2013, when they will be seeking 24.3 billion euros to meet their maturity obligations,” S&P said.

Seventeen CMBS loans went into special servicing in January, almost 50 percent more than the previous monthly record of 12 set in April 2011. Its special servicing index has 132 loans through January, compared with 81 at the same time last year.

To contact the reporter on this story: Neil Callanan in London at ncallanan@bloomberg.net.

To contact the editor responsible for this story: Andrew Blackman at ablackman@bloomberg.net.

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