Fitch Conference: Commercial Real Estate Decline & Negative Credit Effects; Muni Market Downturn

Business Wire, Nov 06, 2009

NEW YORK -- Fitch Ratings will host its annual Morning Credit Brief Conference on Tuesday, Nov. 17, 2009 at the Grand Hyatt in midtown Manhattan with a focus on the broad credit implications for the collapsing commercial real estate market.

The performance metrics of commercial real estate (CRE), an area with a significant risk exposure for financial institutions and the structured finance market, continues to deteriorate at an unprecedented pace. While CRE loans, excluding the more problematic construction and development portfolios, represent more than 125% of total equity for the 20 largest banks rated by Fitch, the risk is even higher for banks with less than $20 billion in assets, as average CRE exposure represents more than 200% of total equity for these institutions. The negative credit implications of the declining CRE market are widespread, affecting not only large and regional financial institutions, but also CMBS entities, insurance companies and REITs whose investment portfolios are seeing a sharp decline in value due to their exposure to falling real estate prices.

At this conference, senior analysts from Fitch's Financial Institutions, Insurance, Structured Finance and REIT teams will provide an update on the effects this decline is having with respect to their individual sectors.

In addition, senior analysts from Fitch's U.S. Public Finance team will also provide an outlook for the U.S. municipal finance sector, specifically the effect that economic conditions have had on municipal finance and downward credit trends.

Registration will begin at 8:30 a.m. with presentations to start at 9:00 a.m. To RSVP for the event and view the full agenda, visit these links: http://fitchratings.nyws.com/morningcreditbrief2009

A full agenda with topics and speakers is also available.

For individuals outside of the New York City area, there will be a live web cast of the event available for viewing. Register for the web cast at this link

http://www.visualwebcaster.com/event.asp?id=62975 on our website.

Additional information is available at 'www.fitchratings.com'.

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