Fitch Conference: Commercial Real Estate Decline & Negative Credit Effects; Muni Market Downturn
Business Wire, Nov 06, 2009
NEW YORK — Fitch Ratings will host its annual Morning Credit Brief Conference on
Tuesday, Nov. 17, 2009 at the Grand Hyatt in midtown Manhattan with a
focus on the broad credit implications for the collapsing commercial
real estate market.
The performance metrics of commercial real estate (CRE), an area with a
significant risk exposure for financial institutions and the structured
finance market, continues to deteriorate at an unprecedented pace. While
CRE loans, excluding the more problematic construction and development
portfolios, represent more than 125% of total equity for the 20 largest
banks rated by Fitch, the risk is even higher for banks with less than
$20 billion in assets, as average CRE exposure represents more than 200%
of total equity for these institutions. The negative credit implications
of the declining CRE market are widespread, affecting not only large and
regional financial institutions, but also CMBS entities, insurance
companies and REITs whose investment portfolios are seeing a sharp
decline in value due to their exposure to falling real estate prices.
At this conference, senior analysts from Fitch’s Financial Institutions,
Insurance, Structured Finance and REIT teams will provide an update on
the effects this decline is having with sacramento homes respect to their individual
sectors.
In addition, senior analysts from Fitch’s U.S. Public Finance team will
also provide an outlook for the U.S
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