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 reflect the pool's high concentration (10 assets remain) and secondary market locations of the underlying collateral. Fitch modeled losses of 49.3% of the remaining pool; expected losses on the original pool balance total 12.8%, including $139.4 million (8.7% of the original pool balance) in realized losses to date. Fitch has designated six (87.4%) Fitch Loans of Concern including the five specially serviced assets (43.6%) and the largest loan in the pool. Since Fitch's last rating action, significant paydown resulted in the full repayment of classes A1-A, A-5 and A-M. Class A-J, the remaining senior class, has been paid down 37.8%.
As of the December 2015 distribution date, the pool's aggregate principal balance has been reduced by 91.7% to $131.9 million from $1.6 billion at issuance. Per the servicer reporting, no loans are defeased. Interest shortfalls are currently affecting classes B through P.
The largest loan in the pool (43.8%) and the largest driver of expected losses is the 3301 N. Buffalo Drive loan, which is secured by a 321,041 square foot office property located in Las Vegas, NV. 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 remained around 60% for the past three years, but has since increased to 77.7% per the September 2015 rent roll. The servicer reported debt service coverage ratio on the A note has improved to 1.89x as of year to date September 30, 2015 compared to 1.23x at year end 2012. Fitch is modeling a significant loss on the loan due to the property's low occupancy and weak market, based on a loan to value ratio of 178.7% including all debt. According to REIS, as of the third quarter of 2015, the overall Vegas office market reported a 24.9% vacancy rate.
The distressed classes are subject to further downgrades should additional losses be realized. No upgrades are anticipated due to the concentration of specially serviced loans.
DUE DILIGENCE USAGE
No third-party due diligence was provided or reviewed in relation to this rating action.
Fitch has affirmed the following classes:
--$79.5 million class A-J at 'CCCsf'; RE 80%.
--$34.0 million class B at 'Csf'; RE 0%;
--$12.0 million class C at 'Csf'; RE 0%;
--$6.4 million 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 certificates.
Additional information is available at www.fitchratings.com.
Global Structured Finance Rating Criteria (pub. 06 Jul 2015)
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Dodd-Frank Rating Information Disclosure Form