Issuance of commercial mortgage-backed securities will remain "sporadic" in Europe, according to Moody's Investors Service.

The securities have become "uneconomical" for banks to sell because of the increased risk premiums demanded by investors during the credit crises, the rating firm said in a report Thursday. The notes are also being hurt by falling property values and rental defaults, Moody's said.

Moody's rated 11 commercial mortgage-backed securities totaling $21 billion in the first half of the year, compared with $50 billion in the first half of 2007, before the crisis started.

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