S&P: GMAC Commercial Mortgage Securities Inc. Series 2003-C3 Rating On Class K Raised; Rating On Class J Affirmed
Our rating actions follow our analysis of the transaction, primarily using ourcriteria for rating U. S. and Canadian CMBS transactions, which included a review of the credit characteristics and performance of the remaining loans inthe pool, the transaction's structure, the classes' interest shortfall history, and the liquidity available to the trust.
We raised our rating on class K to reflect our expectation of the available credit enhancement for the class, which we believe is greater than our most recent estimate of necessary credit enhancement for the respective rating level. The upgrade also follows our views regarding the current and future performance of the transaction's collateral (57.1% of the remaining collateralare fully amortizing loans, and the remainder are defeased), as well as the significantly reduced trust balance.
The affirmation on class J reflects our expectation that the available credit enhancement will be within our estimate of the necessary credit enhancement required for the current rating, as well as our views regarding the current and future performance of the transaction's collateral.
As of the Sept. 12, 2016, trustee remittance report, the collateral pool balance was $18.2 million, which is 1.4% of the pool balance at issuance. The pool currently includes five loans, two of which are defeased ($7.8 million, 42.9%), down from 81 loans at issuance. No loans are currently reported with the special servicer or on the master servicer's watchlist. The master servicer, Berkadia Commercial Mortgage LLC, reported year-end 2015 financial information for 100% of the nondefeased loans in the pool. We calculated a 1.10x S&P Global Ratings' weighted average debt service coverage and 47.8% S&PGlobal Ratings' weighted average loan-to-value ratio using a 7.66% S&P Global Ratings' weighted average capitalization rate for the remaining three nondefeased loans, which have an aggregate outstanding pool trust balance of $10.5 million (57.3%). To date, the transaction has experienced $44.3 million in principal losses, or 3.3% of the original pool trust balance.