Abstract: As consumers rattled by the credit crisis and loss of confidence trim their spending, Standard&Poor's Ratings Services believes that retailers will have an increasingly difficult time luring shoppers to their centers. In our view, the combined effects of falling home prices, higher food and energy costs, and rising unemployment are weighing on the U.S. consumer. As a result, certain retailers are exhibiting significantly weaker performance and have been forced to close stores, and in some cases, declare bankruptcy. At the property and loan level, shuttered stores and early lease terminations are likely to lead to dark spaces and less foot traffic, which we believe will ultimately result in reduced cash flows, and an increase in retail delinquencies and

Brief Excerpt: RESEARCH Ratings Definitions The Potential Impact Of The Troubled Retail Sector On Rated U.S. CMBS Publication date: 11-Nov-2008 Primary Credit Analysts: Larry Kay, New York (1) 212-438-2504; larry_kay@standardandpoors.com James M...

Report Type: Commentary
Sector: Asset-Backed Commercial Paper, Asset-Backed Securities, Collateralized Debt Obligations, Commercial MBS, Real Estate Companies, Residential MBS, Servicer Evaluations, Structured Finance
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 S&P Credit Research
S&P Credit Research provides analysis on issuers and debt obligations of corporations, states and municipalities, financial institutions, insurance companies and sovereign governments. S&P also offers insight into the credit risk of structured finance deals, providing an independent view of credit risk associated with a growing array of debt-securitized instruments.