No Direct Exposure to Signa in European CMBS, but Ripples Across the European CRE Market Likely

On November 29, 2023, Austrian holding company Signa Holding GmbH (Signa)—a property, retail, and hotel group that was heavily indebted and faced financial headwinds from rising interest rates—filed for insolvency.

“Although DBRS Morningstar does not see any direct exposure to Signa (either as a sponsor or tenant) in its European commercial mortgage-backed securities surveillance portfolio, we expect Signa’s default to affect the wider commercial real estate market given the scale and diversity of its operations”, said Mirco Iacobucci, Head of European CMBS at DBRS Morningstar.