Rating Agencies Sound Warnings on CMBS Underwriting

Rating Agencies Sound Warnings on CMBS Underwriting

Bond-rating agencies are sounding the warning on conduit loans: in their view, the loans are getting too large compared to the likely value of the real estate they are securing.

Rating firms threaten to get tougher on the credit enhancement levels they set for CMBS issues, which will eventually result in higher interest rates for CMBS borrowers. Moody’s Investors Service has already raised its credit enhancement for CMBS, and plans to do so again.


Register to view the full article

This article is part of our premium content subscription. You need to subscribe to gain access to premium content.

Why Register for NREIonline? It's simple and free, and here is what you get:

• Access to leading real estate industry research.
• Interactive rankings of commercial real estate professionals.
• Submit your own articles, (if approved) which will appear around the site.

Hide comments


  • Allowed HTML tags: <em> <strong> <blockquote> <br> <p>

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.