Standard & Poor’s had downgraded 15 classes of bonds backed by a $425 million loan secured against the Four Seasons Hotel in New York (FS) and 3 other luxury resort hotels. The action was triggered by a drop in cash flow which was 46% below S&P expectations. Surely, the expected cash flow figure had already been discounted in arriving at these expectations, painting this drop as a serious cause for concern in CRE. Occupancy has dropped from 69% in the last fiscal year to just 58%.

From Zero Hedge: