Fitch Downgrades Two Classes of GMAC 2003-C2

NEW YORK--()--Fitch Ratings has downgraded two classes and affirmed 12 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 downgrades are due primarily to realized losses and potential losses surrounding some of the higher leveraged loans scheduled to mature next year. In 2013, approximately 91.9% of the pool matures. As of the December 2012 distribution date, the pool's aggregate principal balance has been reduced by 45.7% to $655.8 million from $1.29 billion at issuance. In addition, 24 loans (43.8%) are fully defeased.

Fitch has identified nine loans (16.5%) as Fitch Loans of Concern. Fitch's modeled losses are 1.05% of the remaining pool. Interest shortfalls totaling $4,625,850 are currently affecting class K through P.

The largest contributor to Fitch modeled losses is a 325,258 square foot (sf) portion of a community shopping center (4.6%) located in Round Rock, Texas, 20 miles south of Austin. The property's cash flow has suffered due to decreased rent from lower occupancy.

Fitch has downgraded the following classes and assigned Recovery Estimates as indicated:

--$21 million class J to 'CCCsf' from 'B-sf'; RE 100%;

--$8.1 million class K to 'Csf' from 'CCCsf'; RE 0%.

Fitch has affirmed the following classes and revised Rating Outlooks as indicated:

--$471.5 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 to Stable from Positive;

--$11.3 million class G at 'Asf'; Outlook Stable;

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

Class A-1 has paid in full. Classes L, M, N, and O remain at 'Dsf'; RE 0% due to realized losses. 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 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);

--'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=679923

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

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

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Contacts

Fitch Ratings
Primary Analyst
Alex Benz, +1 212-908-0854
Training Analyst
Fitch Ratings, One State Street Plaza
New York, NY 10004
or
Committee Chairperson
Christopher Bushart, +1 212-908-0606
Senior Director
or
Elizabeth Fogerty, +1 212-908-0526
Media Relations
elizabeth.fogerty@fitchratings.com

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Contacts

Fitch Ratings
Primary Analyst
Alex Benz, +1 212-908-0854
Training Analyst
Fitch Ratings, One State Street Plaza
New York, NY 10004
or
Committee Chairperson
Christopher Bushart, +1 212-908-0606
Senior Director
or
Elizabeth Fogerty, +1 212-908-0526
Media Relations
elizabeth.fogerty@fitchratings.com