Fitch Warns About CMBS With Exposure to Fort McMurray Wildfireby
Fitch Ratings placed C$97.2 million ($75.6 million) of Canadian commercial mortgage-backed securities with exposure to properties in Fort McMurray, Alberta, on negative watch in part due to raging wildfires that have forced evacuations from the area.
The nine loans back six multi-family properties, two hotels and an industrial facility, the credit rater said in a statement Thursday. Fort McMurray is in an area rich with oil and has been hit hard by the decline in crude prices, which also weighed on Fitch’s decision, it said.
Lanesborough REIT, which sponsored the loans, indicated it would have problems servicing the debt due to rising vacancies at the properties located in a city at the center of Canada’s oil industry, Fitch said.