Fitch Upgrades 2 Classes of GECCMC 2002-1

NEW YORK--(BUSINESS WIRE)-- Fitch Ratings has upgraded two classes and affirmed two classes of GE Capital Commercial Mortgage Corp., commercial mortgage pass-through certificates series 2002-1 (GECCMC 2002-1). A detailed list of rating actions follows at the end of this press release.

KEY RATING DRIVERS

The upgrades are due to high credit enhancement and the large percentage of defeasance in the pool.

As of the February 2016 distribution date, the pool's aggregate principal balance has been reduced by 98.4% to $16.3 million from $1.04 billion at issuance; the pool has experienced $23.6 million (2.3% of the original pool balance) in realized losses to date. There are three loans remaining in the pool, one (31% of the pool) of which is defeased. Interest shortfalls are currently affecting classes N and P.

The largest loan in the pool (37.3% of the pool) is a single-tenant office property in Dearborn, MI leased to Ford Motor Company (rated 'BBB-'/Positive Outlook). The loan is fully amortizing and the lease is co-terminus with the maturity date.

The remaining non-defeased loan (31.6% of the pool) is secured by two office buildings totaling 77,839 sf located in Sacramento, CA. The two buildings were vacant as of the September 2014 rent roll. Since then occupancy has increased to approximately 15% as of September 2015. The loan previously transferred to special servicing in November 2011 for imminent maturity default. Subsequently, a loan modification was completed in September 2014 that extended the loan term to March 2019 and lowered the interest rate. The loan returned to the master servicer in January 2015.

RATING SENSITIVITIES

The ratings on classes L and M are expected to remain stable as the pool continues to paydown through amortization. A further upgrade to class M is not likely due to pool concentration; downgrades are not likely due to the fully amortizing nature of the largest loan and the defeased loan.

DUE DILIGENCE USAGE

No third party due diligence was provided or reviewed in relation to this rating action.

Fitch upgrades the following classes:

--$893,015 class L to 'AAAsf' from 'Asf'; Outlook Stable;

--$7.8 million class M to 'Asf' from 'BBB-sf'; Outlook Stable.

Fitch affirms the following classes:

--$7.6 million class N at 'Dsf'; RE 50%;

--$0 class O at 'Dsf'; RE 0%.

The class A-1, A-2, A-3, B, C, D, E, F, G, H, J, and K certificates, and the interest-only class X-2 certificates have paid in full. Fitch does not rate the class P certificates. Fitch previously withdrew the rating on the interest-only class X-1 certificates.

Additional information is available at www.fitchratings.com.

Applicable Criteria

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=999602

Solicitation Status

https://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=999602

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/20160217006563/en/

Fitch Ratings
Primary Analyst
Martin Nunnally
Associate Director
+1-212-908-0871
Fitch Ratings, Inc.
33 Whitehall Street
New York, NY 10004
or
Committee Chairperson
Mary MacNeill
Managing Director
+1-212-908-0785
or
Media Relations:
Hannah James, +1 646-582-4947
[email protected]

Source: Fitch Ratings

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