Fitch Downgrades GMACC 2005-C1; Affirms Super Senior and Mezzanine 'AAA' Classes

NEW YORK--(BUSINESS WIRE)--

Fitch Ratings has downgraded eight and affirmed 10 classes of GMAC Commercial Mortgage Securities, Inc., series 2005-C1 (GMACC 2005-C1) commercial mortgage pass-through certificates. A detailed list of rating actions follows at the end of this press release.

The downgrades reflect an increase in Fitch modeled losses across the pool, due to further deterioration of loan performance, most of which involves significantly higher losses on the specially-serviced loans. Fitch modeled losses of 14.7% of the remaining pool; modeled losses of the original pool are at 11%, including losses already incurred to date.

As of the March 2012 distribution date, the pool's aggregate principal balance has been reduced by 46.6% to $0.853 billion from $1.598 billion at issuance, due to a combination of principal repayment (43.5%) and realized losses (3.1%). Interest shortfalls totaling $8.4 million are currently affecting classes C through P.

Fitch has identified 33 loans (49.2%) as Fitch Loans of Concern, which includes 10 specially-serviced loans (16.4%). Of these 10 loans in special servicing, one loan (0.9%) is real estate-owned, four loans (5.6%) are in foreclosure, three loans (8.6%) are 90 days or more delinquent, and two loans (1.2%) remain current.

The largest contributor to modeled losses is a specially-serviced loan (4.7% of the pool) secured by a 658,472 square foot (sf) office building located in the central business district (CBD) of Kansas City, Missouri. The loan was transferred to special servicing in April 2010 due to imminent default.

As of February 2012, property occupancy was weak at 48%, which is down from 79% at issuance. The property and the overall market are both struggling to lease up vacant space. According to the special servicer, modification discussions have stalled.

The second largest contributor to modeled losses is a loan (6.8%) secured by a 321,041 sf office property located in Las Vegas, Nevada. The loan was previously transferred to special servicing in April 2009 for imminent default due to a significant decrease in occupancy. In December 2010, the loan was restructured into an A and B note and was subsequently returned to the master servicer.

Property occupancy as of January 2012 has improved to 64% from 48% reported at year-end 2010, but still down from the 96% reported at issuance. The property's submarket remains weak, with a reported vacancy of 25.6%, according to REIS. The property faces near-term rollover risk as 23.7% of the NRA roll over the next three years.

The third largest contributor to modeled losses is a specially-serviced loan (2.3%) secured by a 5,300-stall parking facility located at Bradley Airport in Windsor Lock, Connecticut. In January 2010, the operator of the facility filed for bankruptcy and rejected its lease. Since then, the borrower has entered into a new management agreement with another third party. The loan has since been modified into an A and B tranche. The maturity date of the loan has also been extended.

The loan was supposed to be returned to the master servicer; however, the borrower was unable to satisfy its November 2011 debt service payment. This was a result of delays in property repairs and damages caused by the October 2011 snowstorm, which caused a reduction in occupancy. The borrower has requested a forbearance. Discussions with the borrower continue, while monthly excess cash flow continues will be applied to pay debt service.

Fitch has downgraded and assigned or revised Rating Outlooks and Recovery Estimates (REs) to the following classes as indicated:

--$127.8 million class A-J to 'BBsf' from 'Asf'; Outlook to Stable from Negative;

--$34 million class B to 'CCCsf' from 'BBsf; RE 65%;

--$12 million class C to 'CCCsf' from 'Bsf'; RE 0%;

--$24 million class D to 'CCCsf' from 'B-sf'; RE 0%;

--$16 million class E to 'CCsf' from 'CCCsf'; RE 0%;

--$16 million class F to 'Csf' from 'CCsf'; RE 0%;

--$16 million class G to 'Csf' from 'CCsf'; RE 0%;

--$20 million class H to 'Csf'' from 'CCsf'; RE 0%.

Additionally, Fitch has affirmed the following classes as indicated:

--$135.6 million class A-1A at 'AAAsf'; Outlook Stable;

--$62.9 million class A-3 at 'AAAsf'; Outlook Stable;

--$68.1 million class A-4 at 'AAAsf'; Outlook Stable;

--$157.4 million class A-5 at 'AAAsf'; Outlook Stable;

--$159.8 million class A-M at 'AAAsf'; Outlook Stable.

--$3.8 million class J at 'Dsf'; RE 0%;

--$0 class K at 'Dsf'; RE 0%;

--$0 class L at 'Dsf'; RE 0%;

--$0 class M at 'Dsf'; RE 0%;

--$0 class N at 'Dsf'; RE 0%.

The rating on class O was previously withdrawn. Class P has been reduced to zero due to realized losses and is not rated by Fitch. Classes A-1 and A-2 have paid in full.

Fitch had previously withdrawn the rating on class O and the interest-only classes X-1 and X-2. For additional information on the withdrawal of the rating on the interest-only classes, see 'Fitch Revises Practice for Rating IO & Pre-Payment Related Structured Finance Securities', dated June 23, 2010.

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' (Aug. 4, 2011);

--'Surveillance Methodology for U.S. Fixed-Rate CMBS Transactions' (Dec. 21 2011).

Applicable Criteria and Related Research:

Global Structured Finance Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=646569

Surveillance Methodology for U.S. Fixed-Rate CMBS Transactions

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=662869

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