Fitch Downgrades 2 Classes of GMACC 2001-C2

2008-06-17 23:56:30 -

- Fitch Ratings has downgraded and assigned a Distressed Recovery (DR) rating to the following classes of GMAC Commercial Mortgage Securities, Inc.'s (GMACC) mortgage pass-through certificates, series 2001-C2:

--$3.8 million class O to 'B-' from 'B';

--$3.8 million class P to 'CCC/DR2' from 'B-'.

In addition, Fitch affirms the following classes:

--$22 million class A-1 at 'AAA';

--$437.7 million class A-2 at 'AAA';

--Interest-only class X-1 at 'AAA';

--Interest-only class X-2 at 'AAA';

--$34 million class B at 'AAA';

--$11.3 million class C at 'AAA';

--$15.1 million class D at 'AAA';

--$9.4 million class E at 'AAA';

--$15.1 million class F at 'AAA';

--$10.4 million class G at 'AA+';

--$9.4 million class H at 'AA';

--$23.6 million class J at 'A-';

--$5.7 million class K at 'BBB+';

--$5.7 million class L at 'BBB';

--$11.3 million class M at 'BB+';

--$3.8 million class N at 'BB-'.

Fitch does not rate the $10.4 million class Q.

The downgrades reflect expected losses from the specially serviced loans and an increase in Fitch Loans of Concern. As of the May 2008 distribution date, the pool's aggregate certificate balance has decreased 16.2% to $632.4 million from $754.9 million at issuance. Twenty-four loans (25.4%) have fully defeased as of May 2008.

Currently, Fitch has identified 17 Loans of Concern (26.1%), including three specially serviced assets (5.6%). Five additional loans (8.2%) have been identified as Loans of Concern since Fitch's last rating action.

The largest specially serviced asset (2.9%) is a 178,591 square foot (sf) office complex located in South Brunswick, NJ. The asset transferred to special servicing in May 2008 due to monetary default and is 64% occupied after the loss of a major tenant.

The second largest specially serviced asset (2.4%) is a 150,581 sf office property in Horsham, PA. This asset transferred to special servicing in May 2008 due to monetary default after the loss of a major tenant in 2007.

The third specially serviced asset (0.3%) is a real estate-owned (REO) retail property in Morrow, GA. The asset was transferred to special servicing after the largest tenant defaulted on their lease. The property currently is 16% occupied and is currently being marketed for sale.

The largest Fitch Loan of Concern, and the largest loan in the pool (4.8%), is secured by an office portfolio collateralized by four properties located in various cities in central and southern Pennsylvania. The portfolio has experienced a decline in occupancy since 2004 and the borrower is marketing the vacant space. The reported consolidated occupancy was 75% as of April 2008.

The second largest Fitch Loan of Concern, and the second largest loan in the pool (4.7%), is secured by a 282,850 sf office property in Earth City, MO. Vacant space was recently leased, with reported physical occupancy of 87% as of April 2008.

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)