Moody’s Cuts Debt on Offices Backed by Pimco to Lowest Junk
- The service cut its ratings on two separate tranches of CMBS
- Office prices keep falling, led by central business districts
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Moody’s Ratings downgraded bonds backed by offices owned by an affiliate of Pacific Investment Management Co. to its lowest ratings as the buildings continue to lose tenants and expectations mount for interest-payment shortfalls.
The $484.7 million commercial mortgage-backed security is the most senior debt of $1.72 billion of mortgages on the portfolio of seven buildings in New York, San Francisco, New Jersey and Boston originated in 2022.