[MLT] Seven Of 10 Defaulted Loans Backing Rated Japanese CMBS Incurred Losses In Q4 2011, Says S&P Report Jan 12
- Language: English
- Published: January 2012
- Region: Japan
Although loans backing Japanese commercial mortgage-backed securities (CMBS) continue to default on an ongoing basis, servicers are progressing with collection procedures faster than the occurrence of defaults. As a result, the number of remaining defaulted loans in Japan's CMBS sector is decreasing. The simple average recovery rate for defaulted, collected loans has fallen slightly over the past six months, to 90%, but remains at a relatively high level. Meanwhile, the ratio of loans that incurred principal losses to total defaulted, collected loans is rising. As such, Standard & Poor's Ratings Services believes that the recovery rate from defaulted loans may fall in the future. A default on an underlying loan is not directly linked to a default on the rated...
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Research Type: Commentary
Criteria articles describe the thought process and methodology Standard & Poor's analysts use in determining ratings. These commentary pieces discuss both the quantitative (economic and financial) and qualitative (business analysis and caliber of management) aspects of the analysis, as well as legal issues.
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