Macy's decision to shutter another 100 of its department stores could impair some $3.64 billion of securitized commercial mortgages, according to Morningstar Credit Ratings. Macy’s store closings could impair securitised commercial mortgages worth $3.64bn, according to Morningstar Credit Ratings. The company said it would close the stores in New York and Los Angeles on Friday as part of a plan announced last week that will see about 200 employees lose their jobs. While the store closures do not directly impact a securitisation, they could create problems for individual loans backed by malls with Macy’s as a tenant. Securitised mortgages collateralised by properties with direct exposure to Macy’s as a tenant total $7.13bn, with loans collateralised by regional malls that include Macy’s as an anchor or a “shadow anchor” tenant reaching $28.49bn. Some shopping centres, such as The Hudson Valley Mall in upstate New York, have run into difficulties resulting from Macy’s closing anchor or shadow-anchor stores.
Macy’s store closings could impair securitised commercial mortgages worth $3.64bn, according to Morningstar Credit Ratings. The company said it would close the stores in New York and Los Angeles on Friday as part of a plan announced last week that will see about 200 employees lose their jobs. While the store closures do not directly impact a securitisation, they could create problems for individual loans backed by malls with Macy’s as a tenant. Securitised mortgages collateralised by properties with direct exposure to Macy’s as a tenant total $7.13bn, with loans collateralised by regional malls that include Macy’s as an anchor or a “shadow anchor” tenant reaching $28.49bn. Some shopping centres, such as The Hudson Valley Mall in upstate New York, have run into difficulties resulting from Macy’s closing anchor or shadow-anchor stores.