NEW YORK--(BUSINESS WIRE)--Fitch Ratings has upgraded one and affirmed one class of GMAC Commercial Mortgage Securities, Inc. 1999-C1 commercial mortgage pass-through certificates series. A detailed list of rating actions follows at the end of this release.
KEY RATING DRIVERS
The upgrade to class H is a result of high credit enhancement and defeasance which fully covers the class balance. There are 13 loans remaining, four of which are defeased (20%), and one (14%) designated as a Fitch Loan of Concern. None of the loans are specially serviced.
Expected losses on the original pool balance total 3.1%, including $39 million (2.9% of the original pool balance) in realized losses to date. As of the September 2015 distribution date, the pool's aggregate principal balance has been reduced by 99% to $13.3 million from $1.33 billion at issuance. Interest shortfalls are currently affecting classes J through K-2.
The Loan of Concern is the River Walk - Uniprop NCII loan (14% of the pool), which was originally secured by a 197-pad mobile home park located in Raleigh, NC. The property ceased operations in September 2008 and has been vacant ever since. The master servicer reports that the property has been rezoned for multifamily use and is currently under contract. The loan has remained current since issuance.
There are several single-tenant property concentrations in the remaining pool, with six loans (32% of the pool) being occupied by a sole tenant. Five of the loans (31%) are currently leased by Rite Aids, four of which have lease expirations in 2018 and one in 2016. The remaining single-tenant property (5.3%) is occupied by a CVS, which has a lease expiration in 2017.
The Rating Outlook on class H remains Stable due to increasing credit enhancement and continued paydown. The class is fully covered by defeased collateral. Class J will remain at 'Dsf' due to incurred losses.
DUE DILIGENCE USAGE
No third-party due diligence was provided or reviewed in relation to this rating action.
Fitch upgrades the following class:
--$2.3 million class H to 'AAAsf' from 'Asf'; Outlook Stable.
Fitch affirmed the following class and revised REs as indicated:
--$11 million class J at 'Dsf'; RE 70%.
The class A-1, A-2, B, C, D, E, F and G certificates have paid in full. Fitch does not rate the class K-1 and K-2 certificates. Fitch previously withdrew the rating on the interest-only class X certificates.
Additional information is available at www.fitchratings.com.
Global Structured Finance Rating Criteria (pub. 06 Jul 2015)
U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria (pub. 10 Dec 2014)
Dodd-Frank Rating Information Disclosure Form