Fitch Upgrades 1 Class of GMACC 2004-C1
OREANDA-NEWS. Fitch Ratings has upgraded one class and affirmed eight classes of GMAC Commercial Mortgage Securities, Inc. commercial mortgage pass-through certificates series 2004-C1 (GMACC 2004-C1). A detailed list of rating actions follows at the end of this press release.
KEY RATING DRIVERS
The upgrade to class F reflects sufficient credit enhancement, due to a sizable subordinate class, and the stable performance of the one remaining loan, which is collateralized by a single tenant retail property. The upgrade also reflects the property's location in a strong retail corridor despite the non-investment grade tenant (Bon-Ton Stores, Inc.). The affirmations of the remaining classes reflect realized losses. To date, $46.3 million (6.4% of the original pool balance) in realized losses have been experienced.
As of the April 2016 distribution date, the pool's aggregate principal balance has been reduced by 98.9% to $8.2 million from $721.4 million at issuance. Interest shortfalls are currently affecting classes G through P.
The one remaining loan is secured by a 230,000 square foot (sf) retail property located in Lombard, IL, which is approximately 20 miles west of Chicago. The subject is 100% leased to Carson Pirie Scott (The Bon-Ton Stores, Inc.) through January 2024, co-terminus with the loan's maturity. The store is part of the Yorktown Center Mall, which is a 1.5 million sf enclosed regional shopping mall that is also anchored by Von Maur and JC Penney. As of year-end (YE) 2014, the servicer reported debt service coverage ratio (DSCR) was 1.37x. The loan is fully amortizing.
The Rating Outlook on class F remains Stable. Although the credit enhancement will increase with continued paydown, Fitch has concerns with a single event risk. Therefore, a rating cap of 'BBsf' is considered appropriate for this concentrated pool. Fitch does not foresee negative rating migration unless there is material economic change to the remaining loan.
DUE DILIGENCE USAGE
No third party due diligence was provided or reviewed in relation to this rating action.
Fitch upgrades the following class:
--$1.3 million class F to 'BBsf' from 'Bsf'; Outlook Stable.
Fitch affirms the following classes and revises REs as indicated:
--$6.9 million class G at 'Dsf'; RE 90%;
--$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%;
--$0 class O at 'Dsf'; RE 0%.
The class A-1, A-2, A-3, A-4, A-1A, B, C, D and E certificates have paid in full. Fitch does not rate the class P certificates. Fitch previously withdrew the ratings on the interest-only class X-1 and X-2 certificates.