Fitch Upgrades 1 Class of GMAC 1999-C1
KEY RATING DRIVERS
The upgrade to class H is a result of increased credit enhancement and defeasance since Fitch's last rating action. There are 13 loans remaining, four are defeased (22%) and one (13%) designated as a Fitch Loan of Concern. None of the loans are specially serviced.
Expected losses on the original pool balance total 3.1%, including \$39 million (2.9% of the original pool balance) in realized losses to date. As of the February 2015 distribution date, the pool's aggregate principal balance has been reduced by 98.9% to \$14.4 million from \$1.33 billion at issuance. Interest shortfalls are currently affecting classes J through K-2.
The Loan of Concern is the River Walk - Uniprop NCII loan (13% of the pool), which was originally secured by a 197 pad mobile home park located in Raleigh, NC. The property ceased operations in September 2008 and has been vacant ever since. The master servicer reports that the property has been rezoned for multifamily use and the borrower has no intentions of selling the property. The loan has remained current since issuance.
There are several single tenant property concentrations in the remaining pool, with six loans (31.9% of the pool) being occupied by a single tenant. Five of the loans (30.2%) are currently leased by Rite Aids, four of which have lease expirations in 2018 and one in 2016. The remaining single tenant
property (5.2%) is occupied by a CVS, which has a lease expiration in 2017.
The Rating Outlook on class H remains Stable due to increasing credit enhancement, continued paydown and increased defeasance collateral. The Class was capped at 'Asf' due to the risk of interest shortfalls as the deal has become very concentrated. Class J will remain at 'Dsf' due to incurred losses.
Fitch upgrades the following classes as indicated:
--\$3.4 million class H to 'Asf' from 'BBsf'; Outlook Stable.
Fitch affirms the following classes and revises REs as indicated:
--\$11 million class J at 'Dsf'; RE 60%.
The class A-1, A-2, B, C, D, E, F and G certificates have paid in full. Fitch does not rate the class K-1 and K-2 certificates. Fitch previously withdrew the rating on the interest-only class X certificates.
Additional information on Fitch's criteria for analyzing U.S. CMBS transactions is available in the Dec. 10, 2014 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