Fitch Downgrades Hundreds of Millions of Wachovia Commercial Mortgage Paper – Outlook; Negative / Ratings Watch; Negative

Ratings agency Fitch has downgraded Wachovia Commercial Mortgage Trust Series 2007 WHALE 8 and changed their outlook to (mostly) negative.

 

Fitch is quite worried about some big hospitality loans in the trust including a massive LXR Hospitality loan that is secured by more than 4700 rooms, many in economically troubled FL, CA and AZ. LXR is the biggest loan in the pool and, obviously a huge concern to Fitch. Last year occupancy at properties that secure the loan was less than 68% and it looks to drop further. Still, all things considered, the LXR loan has done OK so far…but it comes due May 9^th. Will they exercise one of their extension options? Will they refi? Will they seek a modification? We shall soon see.

 

Details on the downgrades and outlook changes can be found at marketwatch.com

——————————————————————————————

 

MasterPlan Capital offers privately funded as-well-as institutionally funded commercial mortgage loans against all types of commercial real estate. Loans from $1MM and up for purchase and refinance. Use our simple, 1 page commercial mortgage request form to apply online.

 

Tags: Banking Crisis, Banks, CMBS, CMO, commercial mortgage, Commercial Mortgage Backed Securities, commercial mortgage loans, commercial real estate, credit crunch, Economy, Fitch, mortgage backed securities, mortgage crisis, recession, Wachovia