According to Morningstar, with a very high debt load, prospects of global real estate services firm - CB Richard Ellis are "precarious." The most telling quote of the article is this:

"We assign a 20% probability that the firm could go bankrupt and equityholders' value would be wiped out. (Even if the firm avoids bankruptcy--which we believe is very likely--it needs to service more than $2.6 billion in debt through a cyclical downturn, and we forecast refinancing requirements of $1 billion in 2011 and $1.2 billion in 2013.)"

No question, the market is tough for all real estate firms in this market. However, it appears that CBRE through its acquistions and expansion may have bitten off more than it can chew.

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