Fitch Takes Rtg Action & Assigns Outlooks to GMAC CMBS, 2000-C2

NEW YORK--(BUSINESS WIRE)--Fitch Ratings has revised the Distressed Recovery (DR) rating on the following class of GMAC Commercial Mortgage Securities, Inc.'s mortgage pass-through certificates, series 2000-C2:

--$1.5 million class M to 'C/DR6' from 'C/DR5'.

In addition, Fitch has upgraded the following class:

--$19.3 million class E to 'AAA' from 'AA+'; Outlook Stable.

Fitch has also affirmed the following classes, and assigned them a Stable Outlook:

--$420.4 million class A-2 at 'AAA';

--Interest only classes X at 'AAA';

--$31 million class B at 'AAA';

--$28 million class C at 'AAA';

--$10.6 million class D at 'AAA';

--$9.7 million class F at 'AA-'.

Fitch does not rate classes G, H, J, K, L, and O certificates. Class N has been depleted due to realized losses. Class A-1 has been paid in full.

Fitch has lowered the DR on class M due to additional expected losses on the real estate owned (REO) asset, a 143,120-square foot (SF) retail property in Champaign, IL. Fitch expects that losses upon liquidation of the asset will have a significant impact on class M, based on recent property valuation.

The upgrade of class E is due to increased credit enhancement level as a result of additional defeasance of three loans (8.6%) and principal paydown of 1.7% since Fitch's last rating action. The Outlooks reflect the likely directions of the rating changes over the next one to two years.

As of the September 2008 distribution date, the pool's aggregate certificate balance has been reduced 27.7% to $569.9 million from $773.7 million at issuance. There are 106 mortgage loans remaining in the transaction, 38 (40.1%) of which are defeased.

Fitch has identified 16 loans of concern (11.4%) due to declining performance, including the REO asset (0.6%). The largest Fitch loan of concern (1.7%) is secured by five retail centers with a total of 239,324 SF in various locations in VA. The servicer reported combined year-end (YE) 2007 debt service coverage ratio (DSCR) was 0.91 times (x), compared to 1.25x at issuance. Per servicer, the decrease in DSCR was primarily due to the low occupancy rate at the River Park Shopping Center (66%) in Vinton, VA as a result of Winn-Dixie vacating its space after its bankruptcy filing.

The second largest Fitch loan of concern (1.5%) is secured by a 247-unit multifamily property in Parsippany, NJ. The property has historically low DSCR while occupancy has been stable in the low- to mid-90% range. Per servicer, the DSCR has remained low since 2001 due to an increase in operating expenses. Servicer reported YE2007 DSCR was 0.85x, compared to 1.21x at issuance.

Eight non-defeased loans (5.32%) are scheduled to mature in 2009, including six retail loans (4.3%), one multifamily loan (0.5%) and one industrial loan (0.5%). The weighted average coupon for these loans is 8.43%. The weighted average YE2007 DSCR was 1.56x with a range of 0.05x to 3.04x. The loan with the low DSCR represents only 0.1% of the pool and is still performing.

Fitch's rating definitions and the terms of use of such ratings are available on the agency's public site, 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.