Fitch Downgrades 1 Class of GMAC 1998-C1

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

SENSITIVITY/RATING DRIVERS:

The downgrade reflects the increased expectation of losses from updated valuations and disposition plans for the largest specially serviced loan. The affirmation of class F is due to high credit enhancement and likelihood of repayment. In addition, one loan payoff (2.8% of the pool) is expected by the February 2013 distribution date.

As of the January 2013 distribution date, the pool's aggregate principal balance has been reduced by 90.8% to $132.7 million from $1.44 billion at issuance. Seven loans remain, two of which (86.8% of the pool) are in special servicing. The pool has experienced $8.7 million (0.6% of the original pool balance) in realized losses to date. There is one defeased loan (0.03% of the pool) in the pool. Interest shortfalls are currently affecting classes G through N.

The largest remaining loan is the specially-serviced Senior Living Properties Portfolio (84.4% of the pool), which is currently secured by 43 healthcare properties located in Texas. The Portfolio originally consisted of 87 properties located in both Illinois and Texas and experienced extensive operating losses beginning in 2000. Operating losses were a result of lower revenues due to changes in the Medicare and Medicaid reimbursement rates. The loan transferred to special servicing in 2001 and subsequently 30 properties located in Illinois were liquidated in 2005 and 2006. The borrower plans on selling the remaining assets in the portfolio and complete a discounted payoff of the loan. A broker has been engaged to market and sell the properties and the maturity of the loan has been extended to Aug. 1, 2013. Based on recent valuations of the properties and increasing fees and expenses as the pool takes longer to liquidate, Fitch expects significant losses upon disposition of the assets.

The other asset in special servicing is a real estate owned (REO) 53,343 sf office property (2.3% of the pool) located in Rocky Mount, NC.

Fitch downgrades the following class:

--$32.4 million class G to 'CCsf' from 'BBsf', RE 50%.

Fitch affirms the following classes as indicated:

--$4.7 million class F at 'A-sf', Outlook Negative;

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

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

--$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%.

Class A-1, A-2, B, C, D and E certificates have paid in full. Fitch does not rate the class N certificates. Fitch previously withdrew the rating on the interest-only class X certificates.

Additional information on Fitch's criteria for analyzing U.S. CMBS transactions is available in the Dec. 18, 2012 report, 'U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria', 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' (June 6, 2012);

--'U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria' (Dec. 18, 2012).

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
Martin Nunnally, +1-212-908-0871
Associate Director
Fitch Ratings, Inc.
One State Street Plaza
New York, NY 10004
or
Committee Chairperson
Mary MacNeill, +1-212-908-0785
Managing Director
or
Media Relations:
Sandro Scenga, New York, +1 212-908-0278
Email: sandro.scenga@fitchratings.com

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Contacts

Fitch Ratings
Primary Analyst
Martin Nunnally, +1-212-908-0871
Associate Director
Fitch Ratings, Inc.
One State Street Plaza
New York, NY 10004
or
Committee Chairperson
Mary MacNeill, +1-212-908-0785
Managing Director
or
Media Relations:
Sandro Scenga, New York, +1 212-908-0278
Email: sandro.scenga@fitchratings.com