Fitch Upgrades One Class of GMAC 2003-C2

NEW YORK--(BUSINESS WIRE)--Fitch Ratings has upgraded one class and affirmed 14 classes of GMAC Commercial Mortgage Securities, Inc., series 2003-C2 (GMAC 2003-C2) commercial mortgage pass-through certificates. A detailed list of rating actions follows at the end of this release.

The upgrade is due to stable performance of the remaining pool and defeasance. As of the December 2011 distribution date, the pool's aggregate principal balance has reduced by 41.1% to $760.2 million from $1.29 billion at issuance. In addition, 23 loans (37.9%) have been fully defeased.

Fitch has identified 11 loans (17.6%) as Fitch Loans of Concern. Fitch's modeled losses are 3.67% of the remaining pool; modeled losses of the original pool are at 4.19%, including losses already incurred to date. Interest shortfalls totaling $3,837,056 are currently affecting class K through P.

The largest contributor to Fitch modeled losses is a 420 unit apartment complex (5.7%) located in Novi, MI, 30 miles northwest of downtown Detroit. The loan was modified in June 2011 and transferred back to the master servicer in November 2011. The modification split the note into an A ($21 million) and B ($22.6 million) tranche with debt service being interest-only on the A piece and interest waived on the B piece.

Fitch has upgraded the following class and assigned an Outlook as indicated:

--$11.3 million class G to 'Asf' from 'BBBsf'; Outlook to Stable from Positive.

Fitch has affirmed the following classes and maintained Outlooks as indicated:

--$85.7 million class A-1 at 'AAAsf'; Outlook Stable;

--$471.6 million class A-2 at 'AAAsf'; Outlook Stable;

--$40.3 million class B at 'AAAsf'; Outlook Stable;

--$16.1 million class C at 'AAAsf'; Outlook Stable;

--$30.7 million class D at 'AAAsf'; Outlook Stable;

--$16.1 million class E at 'AAAsf'; Outlook Stable;

--$21 million class F at 'AAsf'; Outlook Positive;

--$16.1 million class H at 'BBsf'; Outlook Stable;

--$21 million class J at 'B-sf'; Outlook Stable;

--$8.1 million class K at 'CCCsf'; RE 95%;

--$8.1 million class L at 'CCsf'; RE 0%;

--$9.7 million class M at 'Csf'; RE 0%;

--$4.5 million class N at 'Dsf'; RE 0%.

Class O remains at 'Dsf'; RE 0%. Class P, which is not rated by Fitch, has been reduced to zero from $21 million at issuance due to realized losses. Fitch previously withdrew the ratings assigned to the interest-only classes, X-1 and X-2. For additional information, see 'Fitch Revises Practice for Rating IO & Pre-Payment Related Structured Finance Securities, dated June 23, 2010.)

Additional information on Fitch's amended criteria for analyzing U.S. fixed-rate CMBS transactions is provided in the Dec. 21, 2011 report 'Surveillance Methodology for U.S. Fixed-Rate CMBS Transactions', 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' (Aug. 4, 2011);

--'Surveillance Methodology for U.S. Fixed-Rate CMBS Transactions' (Dec. 21, 2010).

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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