Fitch Ratings said recovering sentiment towards German commercial property in the secondary market was not enough to avert significant losses on many legacy loans in affected CMBS transactions. Secondary prices will not approach pre-crisis levels in time for CMBS maturities. Servicers that have avoided selling into a falling market are now having to speed up workouts, and so will come under pressure to accept discounts, the agency said. "Forbearance is becoming less viable as bond maturities approach, and where restructuring has not led to successful deleveraging an enforced resolution may take considerable time," the agency reported.
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