Source : Business Times - 17 Feb 2009
A record 1.16 trillion yen (S$19.17 billion) of property loans backing Japanese securities will mature next year, Moody’s Investors Service said.
Loans backed by office buildings comprise the biggest, followed by those for retail and residential properties, Moody’s said yesterday. A total of 368 loans worth 3.4 trillion yen will mature by the end of 2012, with 120, the most in any year, due in 2009, the rating company said.
‘The number and amount of maturing loans backing CMBS deals will further increase in 2009 and thereafter,’ Moody’s Tokyo-based analyst Kiyosei Sugioka said in the study, referring to commercial mortgage- backed securities.
‘The potential impact on the performance of CMBS loans maturing incrementally will likely also draw more market attention.’
Japan’s economy, the world’s second largest, shrank the most since 1974 last quarter, as recessions in the United States and Europe triggered a record drop in exports, the government said yesterday.
The country’s property market will remain ‘tough’ this year as companies cut jobs, Japan’s largest developer by market value, Mitsubishi Estate Co, said last month.
‘Of loans backed by residential properties, the largest balance, 37 per cent, will mature in 2009,’ Moody’s said. ‘Of loans backed by office buildings and retail properties, the largest balances - 31 per cent and 48 per cent respectively - will mature in 2010.’
Japan’s asset-backed bond market shrank by a third last year, with commercial mortgage-backed securities leading the decline, New-York based Moody’s said in separate research last month.
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