Fitch Sees ‘High Losses’ for CMBS If Malls Can't Refinance

In the Upper Midwest encompassing more than three dozen counties along or adjacent to the Mississippi River. In 2016, the American voters in these districts shifted, in some cases dramatically, to the GOP nominee after backing Democratic presidential nomi — Photographer: Melina Mara/The Washington Post via Getty Images

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By Adam Tempkin

April 5, 2019 at 6:22 PM UTC

This article is for subscribers only.

Commercial mortgage-backed securities could see big losses if troubled mall loans aren’t refinanced before they mature in 2020, according to Fitch Ratings Inc.

The biggest risk is if the borrowers decide to walk away from the property in order to avoid foreclosure, Fitch analyst Huxley Somerville wrote in a research note Friday.