Highlights from Morningstar’s June 2011 Delinquency Report

• The delinquent unpaid balance stands at $60.86 billion out of a total unpaid balance of $740.50 billion.
• The resultant delinquency rate stands at 8.22 percent, down from a peak of 8.37 percent in April 2011.
• The unpaid balance for specially serviced CMBS under review decreased on a net basis by $2.55 billion to $86.50 billion in June down from $89.05 billion in May. It remains below the 12-month high of $91.17 billion in September. Overall, 180 new loans were transferred into special servicing during the month.
• Special servicing exposure amounts to 11.7 percent of total outstanding CMBS loans.
• More than 83 percent of the delinquent unpaid balance through June 2011 came from transactions issued in 2005 through 2007, with more than 37 percent of all delinquency found in 2006-issued transactions.

Source: Morningstar Credit Ratings