The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.

All material subject to strictly enforced copyright laws. © 2022 Euromoney, a part of the Euromoney Institutional Investor PLC.

CMBS: Refinance risk

by Stuart Nelson, credit analyst, Standard & Poor’s .

Better rental, but lower capital growth

Tight to prime

The exposure of outstanding European CMBS programme loans to refinance risk is something we have highlighted for some time (European CMBS refinance risk Part I: storing up trouble for the future; R. Fox et al, Jun 15 2006), and that risk has hardly decreased, with €35 billion of debt now due to be refinanced in the period 2011-13. And while in general coverage ratios remain healthy, increasing issuance volumes mean that the sheer number of loans now securitized implies greater exposure to event risk over the term, a fact witnessed by the fact that ratings performance – historically positive in Europe due to favourable payment structures in the light of heavy prepayments – has seen some negative trends during early 2007. That being said, we have seen nothing yet that would lead us to conclude that average ratings performance will deviate from that expected.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.


Unlimited access to and

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually


Unlimited access to and, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors


Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree