Teen retailer Rue21 filed for Chapter 11 bankruptcy protection earlier this month after announcing plans to shutter 400 stores, putting retail properties backed by $100.7M in CMBS loans at risk as a result.
In its latest report, Morningstar Credit Ratings identified 11 CMBS loans that are secured by properties where Rue21 is a primary tenant. Morningstar said the 400 locations the retailer already plans to close do not pose a great danger to exposed CMBS loans because the properties do not account for a significant portion of net rentable area. But that could change if Rue21 decides to close another chunk of its 1,179-store portfolio.. . . more