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Rating group sees improvement in commercial loan delinquencies

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The pot of delinquent commercial mortgage-backed securities (CMBS) is no longer bubbling over, according to Morningstar Credit Ratings LLC. Through September 2012, the delinquent unpaid balance for CMBS decreased for the third straight month to $57.5 billion, down from $58.6 billion in August and $60 billion in July 2012. Delinquencies have decreased for eight of the last 12 months and appear “to have reached a plateau and may be on the road to some stabilization,” Morningstar said in a report this week. Though the overall numbers are promising, Morningstar said it continues to see an increase in bank-owned properties and loans that are 60- and 90-days overdue.