Fitch Ratings: CMBS refinancing is piling up in July

According to the latest European CMBS bulletin issued by Fitch, a rating agency, a record of 32 major loans backed by CMBS with a total volume of €2.5bln will fall due in July 2012. This includes 13 loans already extended over the past year with a total of €1.5bln. As the conditions for the refinancing of commercial real estate in the secondary market are still relatively tight, the rating agency expects the repayment index to drop sharply.

Ten out of the 32 loans in question have a volume of €100mln of more, which could make refinancing especially tricky due to the banks’ waning risk appetite. The biggest single position is a German retail loan with €380mln outstanding. Fitch thinks that some debtors might be forced to sell parts of their collateral within a short time frame. In an already soft market, this could bring prices under pressure.