Fitch Affirms GMAC 1998-C1

NEW YORK--()--Fitch Ratings has 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.

KEY RATING DRIVERS

The affirmations reflect continued expected losses from the largest loan in the pool. As of the January 2014 distribution date, the pool's aggregate principal balance has been reduced by 91.6% to $121 million from $1.44 billion at issuance with two loans remaining. The pool has experienced $11.7 million (0.8% of the original pool balance) in realized losses to date.

The largest remaining loan is the specially-serviced Senior Living Properties Portfolio (92.6% of the pool), which is currently secured by 42 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 continues to sell the remaining assets in the portfolio and is currently in negotiations to sell 15 of the 42 remaining properties. 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.

RATING SENSITIVITY

The remaining classes are expected to be subject to further downgrades as losses are realized.

Fitch affirms the following classes as indicated:

--$28.5 million class G at 'CCsf', RE 30%;

--$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%.

The class A-1, A-2, B, C, D, E and F 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. 11, 2013 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'.

Applicable Criteria and Related Research:

--'Global Structured Finance Rating Criteria' (May 24, 2013);

--'U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria' (Dec. 11, 2013).

Applicable Criteria and Related Research:

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

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=724961

Global Structured Finance Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=708661

Additional Disclosure

Solicitation Status

http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=818135

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. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.

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
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
sandro.scenga@fitchratings.com