Fitch Downgrades 3 Classes of GMAC Commercial Mortgage Securities 2001-C1

NEW YORK--(BUSINESS WIRE)--Fitch Ratings has downgraded three classes of GMAC Commercial Mortgage Securities, Inc.'s mortgage pass-through certificates, series 2001-C1, as follows:

--$13 million class L to 'B' from 'B+';

--$4.3 million class M to 'CCC/DR1' from 'B-';

--$4.3 million class N to 'CC/DR2' from 'CCC/DR1'.

In addition, Fitch has affirmed the following classes:

--$540.3 million class A-2 at 'AAA';

--Interest-only class X-1 at 'AAA';

--$41 million class B at 'AAA';

--$32.4 million class C at 'AAA';

--$13 million class D at 'AAA';

--$17.3 million class E at 'AAA';

--$13 million class F at 'AAA';

--$13 million class G at 'AA-';

--$25.9 million class H at 'BB+';

--$6.5 million class J at 'BB';

--$6.5 million class K at 'BB-'.

The class A-1 and the interest-only class X-2 balances have been paid in full. Class O remains at 'C/DR6'.

The downgrades are due to an increase in Fitch's expected losses on loans currently in special servicing. Fitch expects the losses to fully deplete class O and to impair class N. As of the June 2008 distribution date, the pool's aggregate principal balance has been reduced 15.2% to $732.7 million from $864.1 million at issuance. Thirty-six loans (42.4%) have defeased, including four (16.1%) of the ten largest loans.

There are currently two specially serviced loans (0.9%). The larger specially serviced loan (0.7%) is secured by a 84,204 square foot office complex located in Atlanta, GA. The property is currently 37% occupied and suffers from deferred maintenance. The loan transferred to special servicing in March 2008 due to imminent default. In May, the property was placed under receivership, and the property is scheduled for foreclosure in the next 60 days. An updated appraisal has indicated a decrease in value of the collateral.

The other specially serviced loan (0.2%) is a 100-unit apartment complex located in Oklahoma City, Oklahoma. The loan was transferred to special servicing in May 2008 due to failure to remit the April and May 2008 payments. The borrower's intention is to bring the loan current, at which time the loan would be reinstated. Losses are not expected at this time.

Fitch has designated 17 loans (17.1%) as Fitch Loans of Concern. This includes the largest non-defeased loan in the pool (5.1%), a multifamily property located in Phoenix, Arizona. The servicer reported that the year-end 2007 debt service coverage ratio was 1.01 times (x), down 21.1% since issuance. The property has been negatively affected by difficult economic conditions and single-family home rental shadow supply.

Fitch's rating definitions and the terms of use of such ratings are available on the agency's public site, 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.