Fitch Ratings Downgrades US Real Estate Related Industries Outlook to Deteriorate Business | Loans | US
On June 5th, international rating agency Fitch downgraded the rating outlook for the US real estate investment trust industry for 2023 to deteriorating, reflecting further tightening of the commercial real estate lending environment due to pressure from the US banking industry, as well as sustained pressure from rising interest rates and macroeconomic headwinds on valuations and fundamentals. About half of the commercial mortgage market, which accounts for $5.5 trillion, still faces restrictions on bank loans.
According to a survey conducted by the Federal Reserve in May 2023, loans decreased by 20% from February to April this year, and further tightening in April will lead to a further contraction of commercial mortgage loans, further limiting real estate transactions. In addition, Fitch expects the United States to enter a recession in 2023.