NEW YORK--(BUSINESS WIRE)--Fitch Ratings has affirmed 13 classes of GMAC Commercial Mortgage Securities, Inc. (GMACC 2005-C1) commercial mortgage pass-through certificates series 2005-C1. A detailed list of rating actions follows at the end of this press release.
KEY RATING DRIVERS
The affirmations of the transaction's distressed ratings reflect the pool's significant concentration with only 10 loans remaining; three of which (26.4% of the pool) are specially serviced and the largest loan was previously modified and split into an A/B hope note (57.7% combined). Additionally, the fourth largest loan (9.5%) is also flagged as a Fitch Loan of Concern due to its tertiary market location and significant tenant rollover during the loan term.
As of the November 2016 distribution date, the pool's aggregate principal balance has been reduced by 93.7% to $100.1 million from $1.6 billion at issuance. No loans are defeased, and interest shortfalls are currently affecting classes A-J and below.
High Expected Losses: The pool continues to have high expected losses relative the remaining collateral balance. Losses on class A-J remain possible.
Specially Serviced Assets: The specially serviced loans did not pay off at their respective 2015 scheduled maturity dates. Charter Oak Mall (15.2%) is an REO a 225,439 sf retail center located in East Hartford, CT. The loan transferred to specially servicing in November 2013 due to imminent default and became REO in September 2015. The remaining two specially serviced assets are also REO retail properties (11.3%).
Performing Loans of Concern: The largest loan in the pool (38%) is secured by a 321,041 sf office property located in Las Vegas, NV. The top three tenants leases (35.1% of NRA) expire prior to or during the same year as the loan's maturity date in June 2020. The loan had previously been in special servicing due to imminent default caused by a significant decrease in occupancy. In 2011, the loan was modified into a $38 million A note and $19.8 million B note. The other loan of concern (9.5%) is secured by 162,621 sf retail center located in Jonesboro, AR. Approximately 15.6% and 49% of NRA is scheduled to expire during the remainder of 2016 and 2017 respectively.
Maturity Concentration: The remaining loans, excluding those that are specially serviced, mature in 2017 (9.5%), 2020 (57.7%) and 2025 (6.4%).
The distressed classes are subject to further downgrades should additional losses be realized or expected losses on the specially serviced loans increase. No upgrades are anticipated due to the concentration of specially serviced loans.
USE OF THIRD-PARTY DUE DILIGENCE PURSUANT TO SEC RULE 17G-10
No third-party due diligence was provided or reviewed in relation to this rating action.
Fitch has affirmed the following classes:
--$70.1 million class A-J at 'CCCsf'; RE 80%.
--$30 million class B at 'Dsf'; RE 0%;
--$0 class C at 'Dsf'; RE 0%;
--$0 class D at 'Dsf'; RE 0%.
--$0 class E at 'Dsf'; RE 0%;
--$0 class F at 'Dsf'; RE 0%;
--$0 class G at 'Dsf'; RE 0%;
--$0 class H at 'Dsf'; RE 0%;
--$0 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%.
Fitch does not rate the class P certificates. Fitch previously withdrew the ratings on class O and the interest-only class X-1 and X-2 certificate
Additional information is available at www.fitchratings.com.
Counterparty Criteria for Structured Finance and Covered Bonds (pub. 01 Sep 2016)
Global Structured Finance Rating Criteria (pub. 27 Jun 2016)
North America and Asia-Pacific Multiborrower CMBS Surveillance Criteria (pub. 01 Dec 2016)
Dodd-Frank Rating Information Disclosure Form
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