The number of commercial property borrowers in Europe experiencing difficulties is increasing rapidly as can be seen from a sharp rise in the number of mortgages on servicers’ watchlists, according to Moody’s.

Watchlists are an early indicator of potential events of default or transfer to special servicing, which sees commercial property experts move in to explore the best ways to cure a mortgage’s troubles or look at options for a work-out or sale, the agency said in a report published on Monday.