Market Overview

Fitch Affirms GMAC 1997-C1

NEW YORK--(BUSINESS WIRE)--

Fitch Ratings has affirmed one class of GMAC Commercial Mortgage Securities, Inc. (GMAC) commercial mortgage pass-through certificates series 1997-C1. A detailed list of rating actions follows at the end of this press release.

KEY RATING DRIVERS

The affirmation is due to sufficient credit enhancement to the remaining Fitch rated class and minimal Fitch expected losses across the pool. Fitch modeled losses of 2.8% of the remaining pool; expected losses on the original pool balance total 3.7%, including losses already incurred. The pool has experienced $60.9 million (3.6% of the original pool balance) in realized losses to date. Fitch has designated three loans (8.5%) as Fitch Loans of Concern, which includes the two specially serviced assets.

As of the January 2013 distribution date, the pool's aggregate principal balance has been reduced by 95.2% to $80.9 million from $1.7 billion at issuance. Per the servicer reporting, one loan (25.4% of the pool) is defeased. Interest shortfalls are currently affecting classes H through K.

Although credit enhancement of the one remaining rated class G is high for a 'BB' rating, upgrades are not warranted. The pool is concentrated with 10 of the remaining 22 loans secured by properties occupied by single tenants and thus carry a great deal of binary risk.

The largest contributor to expected losses is secured by a 52,419 square foot (sf) business park (1.9% of the pool) located in Plantation, Florida. The Borrower has been involved in two recent lawsuits, though these legal issues have since been cleared and the borrower has expressed a desire to pay the loan in full. The borrower is, however, contesting amounts due.

The next largest contributor to expected losses is a loan secured by two shopping centers totaling 175,369-sf located in Portage, WI and Waseca, MN. Occupancy declined 23% when Wal-Mart vacated upon its Feb. 27, 2007 lease expiration date. The market remains slow in the local area.

Fitch affirms the following classes:

--$34.3 million class G at 'BBsf'; Outlook Stable.

Classes A-1 through F are paid in full. Fitch does not rate the class H or K certificates. Fitch previously withdrew the rating on the interest-only class X certificates.

Additional information on Fitch's criteria for analyzing U.S. CMBS transactions is available in the Dec. 18, 2012 report, 'U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria', which is available at 'www.fitchratings.com' under the following headers:

Structured Finance >> CMBS >> Criteria Reports

Additional information is available at 'www.fitchratings.com'. The ratings above were solicited by, or on behalf of, the issuer, and therefore, Fitch has been compensated for the provision of the ratings.

Applicable Criteria and Related Research:

--'Global Structured Finance Rating Criteria' (June 6, 2012);

--'U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria' (Dec. 18, 2012).

Applicable Criteria and Related Research:

Global Structured Finance Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=679923

U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=696969

ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE.

Fitch Ratings
Primary Analyst
Alex Benz, +1-212-908-0854
Fitch Ratings, Inc.
One State Street Plaza
New York, NY 10004
or
Committee Chairperson
Mary MacNeill, +1-212-908-0785
Managing Director
or
Media Relations
Sandro Scenga, +1 212-908-0278 (New York)
sandro.scenga@fitchratings.com

 

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