Fitch Affirms 7 Classes of GMAC 1998-C1

NEW YORK--(BUSINESS WIRE)--Fitch Ratings has affirmed seven classes of GMAC Commercial Mortgage Securities, Inc.'s commercial mortgage pass-through certificates, series 1998-C1 and downgraded one class. A detailed list of rating actions follows at the end of this release.

The downgrade to the class H notes reflects an increase in Fitch expected losses in light of updated values on specially serviced assets. Fitch modeled losses of 38.6% of the remaining transaction. There are currently two specially-serviced loans (58.53%) in the pool.

As of the January 2012 distribution date, the pool's aggregate principal balance has been paid down by 86.2% to $197.1 million from $1.4 billion at issuance. Three loans (7.5%) are defeased. Currently, interest shortfalls are affecting classes G through N.

The largest contributor to loss (57% of pool balance) is the SLP loan which is secured by 44 healthcare properties in Texas. A buyer was identified and engaged but a deal was never completed. The maturity of the loan has been extended to Aug. 1, 2012. Fitch expects losses upon liquidation of the loan.

The next largest contributor to losses (1.58%) is a 52,826 square foot office property located in Rocky Mount, NC. The special servicer continues to pursue foreclosure of the property. Fitch expects losses upon liquidation of the loan.

Fitch downgrades the following class and assigns the Recovery Estimate (RE) as indicated:

-- $25.6 million class H to 'Csf; RE 85%' from 'Bsf'.

Fitch affirms the following classes and revises the Outlooks and REs as indicated:

-- $34.8 million class E at 'AAAsf'; Outlook Stable;

-- $43.1 million class F at 'A-sf'; Outlook to Negative from Stable;

-- $32.4 million class G at 'BBsf'; Outlook to Negative from Stable;

-- $14.4 million class J at 'Csf'; RE to 0% from 90%;

-- $25.2 million class K at 'Csf'; RE 0%;

-- $14.4 million class L at 'Csf'; RE 0%;

-- $10.8 million class M at 'Csf'; RE 0%.

Classes A-1, A-2, B, C and D have paid in full.

Fitch does not rate class N.

The ratings on the Class X notes were previously withdrawn.

Additional information on Fitch's criteria for analyzing U.S. CMBS transactions is available 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, 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

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.