VNO - Fitch examines how work-from-home will impact CMBS credit ratings

One of the trends expected to come out of the pandemic is that more people will continue to work from home even after most people are vaccinated and COVID-19 is brought under control.That trend can have a significant impact on property values and on the securities that finance them, according to Fitch Ratings.In a recent report, "WFH Secular Shift Will Pressure U.S. Office Properties," Fitch calculates how such a change will affect U.S. commercial mortgage-backed securities' credit ratings.In a kind of stress test, Fitch applies two scenarios — a moderate stress scenario and a severe scenario.The moderate scenario assumes employees work remotely 1.5 days per week, or a 20% decline in office workers and a 10% decline in office space demand. (Fitch expects that space may not shrink in direct proportion to the number of workers in the office.)The severe version double the moderate scenario assumptions. Fitch assumes rents would

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Fitch examines how work-from-home will impact CMBS credit ratings