2009-01-12 19:51:03 -
Fitch Ratings downgrades GMAC Commercial Mortgage Securities, Inc.'s mortgage pass-through certificates, series 1999-C1 as follows:
--$20 million class J to 'CC/DR4' from 'CCC/DR2'.
In addition, Fitch affirms and maintains Outlooks as follows:
--Interest only class X at 'AAA'; Outlook Stable;
--$16.3 million class C at 'AAA'; Outlook Stable;
--$86.7 million
class D at 'AAA'; Outlook Stable;
--$20 million class E at 'AAA'; Outlook Stable;
--$83.4 million class F at 'A-'; Outlook Positive;
--$13.3 million class G at 'BBB'; Outlook Stable;
--$26.7 million class H at 'B+'; Outlook Stable.
The $2.4 million class K-1 is not rated by Fitch. Classes A-1, A-2 and B have paid in full.
Although credit enhancement levels have increased since Fitch's last rating action, Fitch expected losses have also increased and adverse selection among the remaining loans warrant the downgrade. The rating outlooks reflect the likely direction of the rating changes over the next one to two years. As of the December 2008 distribution date, the transaction's aggregate principal balance has decreased 69.3%, to $268.8 million from $1.33 billion at issuance. Fourteen loans (29.3%) are defeased. Sixty-two loans remain in the pool, decreased from 228 at issuance.
Fitch has identified 21 Loans of Concern (42.3%), with 11 loans (32.8%) in special servicing and losses expected to the trust. The largest specially serviced asset (19.1%) is a 644,265 square foot (sf) retail mall located in Ulster, NY. The loan transferred to the special servicer in December 2008 for maturity default. The scheduled maturity was January 2009. The most recent servicer reported debt service coverage ratio (DSCR) was 0.99 times (x) with a reported occupancy of 92%. Tenants include Macy's, Sears and JCPenney.
The second largest specially serviced asset (4.3%) is a 102,569 sf office property located in Alpharetta, GA. The loan transferred to special servicing due to an imminent default when the borrower indicated they would be unable to payoff the loan at the January 2009 maturity date. The most recent servicer reported occupancy and DSCR as of September 2008 was 100% and 1.39x, respectively.
The largest Loan of Concern not in special servicing (2.6%) is secured by a 60,000 sf retail center in Murray, UT. One of two original tenants, Staples, which occupied 39% of the center, vacated its space in 2002 and sublets the space to a home furnishing store. Staples will continue to pay the rent until lease expires in July 2013. The other tenant, Linens 'n Things, will close as part of the company's liquidation. The borrower is actively marketing the space. The servicer reported DSCR as of September 2008 was 1.46x, compared to 1.36x at issuance.
Seven loans (6.8%) were scheduled to mature in 2008 and were transferred to the special servicer for maturity or payment default. In addition, nine non-defeased loans (30.2%) are scheduled to mature in 2009, four of which are in special servicing (26%). The five loans scheduled to mature in 2009 that are not in special servicing (4.2%) have coupons that range from 6.06% to 7.25% with the weighted average coupon (WAC) at 6.74%. Three of the five loans are considered Fitch Loans of Concern due to low DSCR or other performance issues.
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.
Fitch Ratings, New York
Jeffrey Diliberto, +1-212-908-9173
Adam Fox, +1-212-908-0869
Sandro Scenga, +1-212-908-0278 (Media Relations)
sandro.scenga@fitchratings.com 
