MUMBAI (Thomson Financial) - The European market for commercial mortgage-backed securities (CMBS) continued its strong growth during the first half, driven partly by German CMBS securitization, Standard & Poor's Ratings Services said in a report.
However, this robust performance has been pressured by a rising number of downgrades, it said
'While double the number of upgrades is being seen versus downgrades, absolute levels of downgrades are on the rise. Additionally, liquidity facilities continued to be drawn in a small number of transactions in the first half of the year,' said Christina Pries, credit analyst at Standard & Poor's.
Delinquency levels remain low at 0.1 pct, yet this level is seperated from the primary overall performance metric, S&P said, adding that its overview of several indicators in its study of over 450 program loans show that risks for the future are 'marked'. TFN.newsdesk@thomson.com ran/ajb COPYRIGHT Copyright AFX News Limited 2007. All rights reserved. The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News.
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