OREANDA-NEWS. Strong performance for U.S. CMBS 2.0 continues as CMBS 1.0 exhibits adverse selection, according to Fitch Ratings in a new report.

The Fitch-rated CMBS 2.0 universe now exceeds 1.0, with CMBS 2.0 (post-2009) at $206.1 billion of Fitch's rated universe compared to $146.6 billion for CMBS 1.0 deals. Cumulative CMBS 2.0 defaults are still very low, with only 37 loans ($310 million) defaulting thus far and term risk still minimal. Of loans currently in special servicing, only 40 loans ($486 million) are from the 2.0 universe, compared to 997 loans ($18.9 billion) in CMBS 1.0.

CMBS 2.0 is most at risk for maturity defaults due to rising interest rates, particularly if increases are frequent and sizeable. It's also important to take into account the lingering question mark of risk retention and how that will affect CMBS borrowers' ability to refinance loans at maturity.

'CMBS 2.0 Continues Stable Performance' is available at 'www.fitchratings.com'.