Fitch Upgrades 1 Class of GMACC 2004-C1

CHICAGO--(BUSINESS WIRE)-- 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.

RATING SENSITIVITIES

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.

Additional information is available at www.fitchratings.com.

Applicable Criteria

Criteria for Analyzing Large Loans in U.S. Commercial Mortgage Transactions (pub. 27 Aug 2015)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=870009

Criteria for Rating Caps and Limitations in Global Structured Finance Transactions (pub. 28 May 2014)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=748781

Exposure Draft: Counterparty Criteria for Structured Finance and Covered Bonds (pub. 14 Apr 2016)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=878412

Global Structured Finance Rating Criteria (pub. 06 Jul 2015)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=867952

U.S. and Canadian Fixed-Rate Multiborrower CMBS Surveillance and U.S. Re-REMIC Criteria (pub. 13 Nov 2015)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=873395

Additional Disclosures

Dodd-Frank Rating Information Disclosure Form

https://www.fitchratings.com/creditdesk/press_releases/content/ridf_frame.cfm?pr_id=1002915

Solicitation Status

https://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=1002915

Endorsement Policy

https://www.fitchratings.com/jsp/creditdesk/PolicyRegulation.faces?context=2&detail=31

ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE '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 MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.

View source version on businesswire.com: http://www.businesswire.com/news/home/20160420006441/en/

Fitch Ratings
Primary Analyst
Daniel Anderson
Associate Director
+1-312-606-2305
Fitch Ratings, Inc.
70 West Madison Street
Chicago, IL 60602
or
Committee Chairperson
R. Brook Sutherland
Senior Director
+1-312-606-2346
or
Media Relations:
Sandro Scenga, +1-212-908-0278
[email protected]

Source: Fitch Ratings

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