Research Recap submits:

But despite elevated losses from commercial real estate loans, Moody’s does not expect to make system-wide rating downgrades.

Moody’s estimates that rated U.S. banks hold 50% of total CRE loans and will incur CRE losses of $120 billion from 2008 through 2011. This sum represents a loss rate of approximately 17% on the banks’ year-end 2007 CRE loan balances. For both rated and unrated banks, total remaining losses on CRE lending may well exceed $150 billion.

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