Fitch Downgrades 3 Classes of GMAC 2001-C2

NEW YORK--()--Fitch Ratings has downgraded three classes and affirmed eight classes of GMAC Commercial Mortgage Securities, Inc. (GMAC) commercial mortgage pass-through certificates series 2001-C2. A detailed list of rating actions follows at the end of this press release.

KEY RATING DRIVERS

The downgrades are the result of greater than expected realized losses on previously liquidated loans and increased loss expectations on the remaining specially serviced assets. The primary driver of realized losses since the previous rating action was a loan secured by a 177,623 square foot (sf) office property located in South Brunswick, NJ. The property was liquidated in February 2014 which resulted in a loss severity of 97.6%, a loss amount greater than anticipated during the preceding review. Since last review, an updated appraisal was received that was considerably lower than the prior review's valuation.

As of the March 2014 distribution date, the pool's aggregate principal balance has been reduced by 94.4% to $41.9 million from $754.9 million at issuance. No loans are defeased. Interest shortfalls are currently affecting classes J through Q. Fitch has designated three loans (90.8%) as Fitch Loans of Concern, all of which are specially serviced assets.

The largest contributor to expected losses is the Corporate Woods Office Building II & III (65% of the pool), a 282,850 sf office complex located in Earth City, MO. The loan was transferred to special servicing in April 2010 and foreclosure was completed in January 2011. The property has been stabilized and the special servicer is looking to expand a large, existing tenant prior to marketing the asset for sale. As of year-end 2013, the property was 92% occupied and reported a net operating income (NOI) of $1.5 million.

The second largest contributor to expected losses is a portfolio of four cross-collateralized office-flex buildings located in Jacksonville, FL (23.7% of pool). The loan was transferred to special servicing in July 2009 and foreclosure was completed in March 2011. It is anticipated that the properties will be re-launched to the market for sale in 2014. As of year-end 2013, the property was 36% occupied and reported a NOI of $34 thousand.

RATING SENSITIVITY

The Negative Rating Outlook on class E indicates the possibility for a downgrade should payments from the liquidations be significantly lower than expected. Downgrades to the distressed classes (below 'B') are likely as additional losses are realized.

Fitch downgrades the following classes and revises Rating Outlooks as indicated:

--$4.6 million class E to 'BBBsf' from 'Asf', Outlook to Negative from Stable;

--$15.1 million class F to 'CCCsf' from 'BBsf', RE 90%;

--$10.4 million class G to 'Csf' from 'CCsf', RE 0%.

Fitch affirms the following classes as indicated:

--$9.4 million class H at 'Csf', RE 0%;

--$2.4 million class J at 'Dsf', RE 0%;

--$0 class K at 'Dsf', RE 0%;

--$0 class L at 'Dsf', RE 0%;

--$0 class M at 'Dsf', RE 0%;

--$0 class N at 'Dsf', RE 0%;

--$0 class O at 'Dsf', RE 0%;

--$0 class P at 'Dsf', RE 0%.

The class A-1, A-2, B, C, D and X-2 certificates have paid in full. Fitch does not rate the class Q certificates. Fitch previously withdrew the rating on the interest-only class X-1 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 then CMBS then 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:

Global Structured Finance Rating Criteria

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

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

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

Additional Disclosure

Solicitation Status

http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=826257

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
Darren Liss, +1 212-908-0753
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, +1 212-908-0278
sandro.scenga@fitchratings.com

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Contacts

Fitch Ratings
Primary Analyst
Darren Liss, +1 212-908-0753
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, +1 212-908-0278
sandro.scenga@fitchratings.com