(The following statement was released by the rating agency)

Dec 07 -

OVERVIEW

-- This month, our report takes a look at the performance of our special servicing index and the characteristics of repaid loans.

-- Since 2008, our special servicing index has seen significant increases year-on-year.

-- The number of loans that repaid from our special servicing index on an annual basis reached an all-time high of 31 in 2012.

-- This figure is higher than the 21 loans that repaid in 2011, but still represents just 17.61% of the total loans in special servicing in 2012.

Standard & Poor's Ratings Services' European commercial mortgage-backed securities (CMBS) monthly bulletin for November 2012 looks at our special servicing index and some of the characteristics of repaid loans.

Credit analyst James Belchamber said 'Based on the large number of maturities in 2013, if the current loan maturity performance continues, about 140 loans could potentially enter special servicing next year.'

'Since we began monitoring specially serviced loans in 2006, by the end of October 2012, 230 loans had entered our special servicing index, 28 repaid in full, 36 repaid with a loss, 21 were resolved (which either relate to nonmonetary breaches, or for which we are awaiting final information), and 145 remain in our index,' he continued.

Since 2008, our special servicing index has seen significant yearly increases. At the same time, the number of loans that repaid from our special servicing index on an annual basis reached an all-time high of 31 in 2012. This figure is higher than the 21 loans that repaid in 2011, but still represents just 17.61% of the total loans in special servicing in 2012.

The report shows that 28 loans in our special servicing index have repaid in full since then, and 36 have repaid with a loss. We have taken a preliminary look into overall losses suffered by the 36 loans that repaid with a loss and what costs they have incurred while in special servicing.

In October, 12 loans entered our special servicing index. This was primarily due to maturity payment defaults, which accounted for 85% of delinquencies. In terms of rating actions for the month, we downgraded 31 classes of notes in seven transactions.

RELATED CRITERIA AND RESEARCH

-- European CMBS Monthly Bulletin (November 2012): An Initial Look At Loan Resolution, Dec. 5, 2012

(Bangalore Ratings Team, Hotline: +91 80 4135 5898 satish.kb@thomsonreuters.com, Group id: BangaloreRatings@thomsonreuters.com, Reuters Messaging: satish.kb.thomsonreuters.com@reuters.net)

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