Fitch Affirms Distressed Classes of GECMC 2005-C3

CHICAGO--()--Fitch Ratings affirms the remaining distressed classes of GE Commercial Mortgage Corporation, series 2005-C3 commercial mortgage pass-through certificates. A detailed list of rating actions follows at the end of this release.

KEY RATING DRIVERS

The affirmation of class J is the result of continued expected losses. Three specially serviced assets remain in the pool and losses are considered inevitable.

The pool consists of three assets: Shaw's Marketplace, categorized as 'Performing Matured' (52.8%); Tinley Crossing - 8151 W. 183rd, categorized as 'Non Performing Matured' (24.6%); and the real estate owned (REO) Valley View Market (22.6%). Due to appraisal reductions, there is not enough principal and interest to pay the bonds in full each month; since January 2016, class J is being shorted just over $1 thousand in principal per month. However, ultimate recovery of the principal shortfalls is possible upon the disposition of any of the remaining assets.

As of the May 2016 distribution date, the month's net appraisal subordinate entitlement reduction (ASER), as a result of appraisal reductions, was approximately $15 thousand. Combined with approximately $5 thousand in additional fees and expenses, the trust does not receive enough funds to pay each bond in full. Full interest is paid to class J and X-C; however, principal is due after interest so the funds are not sufficient to pay full principal to class J. As of May, class J was shorted $1,137 in principal. Class K receives neither principal nor interest and has already incurred realized losses.

RATING SENSITIVITIES

The rating of class J will remain at 'C' until losses are realized at which time the rating will be lowered to 'D'. Class K has previously incurred principal losses and will remain at 'D' until withdrawn.

DUE DILIGENCE USAGE

No due diligence was provided or reviewed in relation to this rating action.

Fitch affirms the following class:

--$16.3 million class J at 'Csf'; RE 20%.

Classes A-1, A-2, A-3FX, A-3FL, A-4, A-5, A-6, A-AB, and classes B through H have paid in full. Classes K, L, M, N and O are affirmed at 'Dsf' RE0%, and have either incurred realized losses or been reduced to zero due to realized losses. Classes P and Q, also reduced to zero due to realized losses, are not rated by Fitch. Fitch previously withdrew the ratings on the interest only classes X-C and X-P.

Additional information is available at www.fitchratings.com.

Applicable Criteria

Global Structured Finance Rating Criteria (pub. 06 Jul 2015)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=867952

U.S. and Canadian Fixed-Rate Multiborrower CMBS Surveillance and U.S. Re-REMIC Criteria (pub. 13 Nov 2015)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=873395

Additional Disclosures

Dodd-Frank Rating Information Disclosure Form

https://www.fitchratings.com/creditdesk/press_releases/content/ridf_frame.cfm?pr_id=1005097

Solicitation Status

https://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=1005097

Endorsement Policy

https://www.fitchratings.com/jsp/creditdesk/PolicyRegulation.faces?context=2&detail=31

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Contacts

Fitch Ratings
Primary Analyst
Britt Johnson
Senior Director
+1-312-606-2341
Fitch Ratings, Inc.
70 W. Madison Street
Chicago, IL 60602
or
Committee Chairperson
Mary MacNeill
Managing Director
+1-212-908-0785
or
Media Relations:
Sandro Scenga, +1 212-908-0278
sandro.scenga@fitchratings.com

Contacts

Fitch Ratings
Primary Analyst
Britt Johnson
Senior Director
+1-312-606-2341
Fitch Ratings, Inc.
70 W. Madison Street
Chicago, IL 60602
or
Committee Chairperson
Mary MacNeill
Managing Director
+1-212-908-0785
or
Media Relations:
Sandro Scenga, +1 212-908-0278
sandro.scenga@fitchratings.com