Fitch Affirms GMAC 2005-C1
NEW YORK--(BUSINESS WIRE)--Fitch Ratings has affirmed 18 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
Fitch modeled losses of 17.6% of the remaining pool; expected losses on the original pool balance total 14%, including $96.8 million (6.1% of the original pool balance) in realized losses to date. Fitch has designated 24 loans (39.6%) as Fitch Loans of Concern, which includes 11 specially serviced assets (19.7%).
As of the January 2014 distribution date, the pool's aggregate principal balance has been reduced by 54.9% to $721.4 million from $1.6 billion at issuance. Per the servicer reporting, six loans (15.3% of the pool) are defeased. Interest shortfalls are currently affecting classes B through P. The top three contributors to expected loss remain unchanged from last year's rating action and these expected losses make up approximately 52% of the current modeled losses
The largest contributor to expected losses is a loan (8.0% of the pool) secured by a 321,041 square foot (sf) office property located in Las Vegas, Nevada. Subsequent to its 2010 restructure into an A and B note and return back to the master servicer, the loan has continued to perform under the terms of the modification. Occupancy has improved to 62.4% as of nine months ended Sept. 30, 2013 from 60.6% as of year-end (YE) 2012, and the debt service coverage ratio (DSCR) has also improved to 1.63x from 1.23x during the same period. Fitch is modeling a significant loss due to the property's consistent low occupancy and weak market. According to REIS, as of the fourth quarter of 2013, the overall Vegas office market reported a 26.0% vacancy rate.
The next largest contributor to expected losses is a specially-serviced loan (3.0%) secured by a 5,300-stall parking facility located at Bradley International Airport in Windsor Lock, Connecticut. The loan was previously modified into an A and B note, and has remained with the special servicer since its 2010 transfer date. A stipulated foreclosure is being discussed with the Borrower according to the special servicer.
The third largest contributor to expected losses is a specially-serviced loan (2.6%) secured by a 243,212 sf retail property located in Colorado Springs, Colorado. The loan has remained in special servicing since its 2011 transfer date. As of November 2013, the property was 53.6% occupied. The real estate owned (REO) property is expected to be marketed for sale after repair issues are addressed and an increase in leasing activity.
Rating Outlooks on classes A1-A through A-5 remain Stable due to increasing credit enhancement and continued paydown. The Rating Outlook on class A-M was revised to Negative from Stable due to an increase in Fitch modeled losses of the original pool balance as well as significant maturity risk (84.9%) in 2015. Distressed classes (those below 'B') may be subject to further negative rating actions as losses are realized.
Fitch affirms the following classes as indicated:
--$111.1 million class A-1A at 'AAAsf', Outlook Stable;
--$2.2 million class A-3 at 'AAAsf', Outlook Stable;
--$68.1 million class A-4 at 'AAAsf', Outlook Stable;
--$157.4 million class A-5 at 'AAAsf', Outlook Stable;
--$159.8 million class A-M at 'AAAsf', Outlook to Negative from Stable;
--$127.8 million class A-J at 'CCCsf', RE 80%;
--$34 million class B at 'CCCsf', RE 0%;
--$12 million class C at 'CCsf', RE 0%;
--$24 million class D at 'CCsf', RE 0%;
--$16 million class E at 'Csf', RE 0%;
--$9.1 million 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%.
The class A-1 and A-2 certificates have paid in full. 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 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:
Global Structured Finance Rating Criteria
U.S. Fixed-Rate Multiborrower CMBS Surveillance and Re-REMIC Criteria