Raft of Commercial Mortgage Bond Ratings Were Slashed, Bank of America Says
- Bank says many tied to ongoing Fitch review of CMBS bonds
- NAIC annual capital review may pressure sector, BofA says
This article is for subscribers only.
Credit ratings were cut on the highest number of commercial mortgage-backed securities in “recent memory” last week, according to strategists at Bank of America Corp.
The tally of downgrades last week hit 121 tranches from 40 deals, according to the bank. Many were tied to Fitch Ratings’ ongoing review of the CMBS bond market as the ratings company downgraded or warned of underperforming offices, retail locations and hospitality properties or portfolios. So far in September, BofA has spotted 188 bond downgrades and just 15 upgrades.