Fitch Upgrades GMAC 1998-C2
OREANDA-NEWS. Fitch Ratings has upgraded one class and affirmed five classes of GMAC Commercial Mortgage Securities, Inc.'s mortgage pass-through certificates, series 1998-C2 (GMAC 1998-C2). A detailed list of rating actions follows at the end of this press release.
KEY RATING DRIVERS
The upgrade of class H is based on the overall stable performance of the underlying collateral pool, increase in credit enhancement from loan paydown, a large percentage of defeased loans as well as continued expected amortization. Nine loans (31.5%) are defeased and 25 loans (31.8%) are fully amortizing. Loan maturities are concentrated in years 2017 (13.1%), 2018 (40.6%), and 2023 (41.4%).
As of the February 2016 distribution date, the pool's aggregate principal balance has been paid down by 97.6% to $59.9 million from $2.5 billion at issuance. Fitch modeled losses of 9.7% of the remaining pool; expected losses of the original pool are at 2.7% including losses already incurred to date (2.5%). Fitch has designated two Fitch Loans of Concern (11.8%) of which one (2%) is specially serviced.
The largest contributor to modeled losses, Georgetown Plaza Shopping Center (9.8% of the pool), is secured by a 109,800 square foot (sf) retail center in Indianapolis, IN that was previously in special servicing. The borrower was unable to refinance at the loan's original maturity of May 2008 partly due to environmental issues relating to a former tenant at the site. The loan was transferred to the special servicer in April 2008 for imminent payment default. The special servicer worked with the borrower and insurance company to complete remediation and disposition plan for the environmental issues. The loan was modified and split into a A/B note structure ($3.6 million A note/$1.7 million B note) with the loan term extended to July 2017. The loan returned to the master servicer in March 2015. The center's occupancy dropped to 68%, as of February 2016, after several tenants vacated the premises at their lease expiration. The servicer contacted the sponsor for a leasing update and Fitch will continue to the monitor the loan for new developments. The loan remains current.
The specially serviced loan and second largest contributor to modeled losses, Stratford House (2%), is 149,410 sf healthcare facility located in Chattanooga, TN. The loan transferred to the special servicer in November 2013 for payment default. The 197-bed center historically performed well as the tenant leased the building and is responsible for operations through May 2019. Although payments are received late, the loan is current. The sponsor indicates that the building could be sold in early 2016 through a portfolio or one-off transaction.
The largest non-defeased loan in the pool, D'Amato Portfolio, is a portfolio of thirty-seven buildings consisting of 719,972 sf of retail and industrial space located in Milford, CT. As of September 2015, the occupancy of the portfolio was listed at 94%. The portfolio has experienced consistent performance since issuance with the sponsor needing to only address minor deferred maintenance issues. The partial IO loan is amortizing and the loan is scheduled to mature in July 2023.
RATING SENSITIVITIES
Classes G and H have Stable Outlooks due to high credit enhancement and the expectation that these classes will pay in full. Despite the high credit enhancement and defeased collateral, the Outlook on class J remains Stable due to increased concentration risk and adverse selection of the remaining loan pool. The recovery estimate for class K could be revised lower if losses from the specially serviced loan or Fitch loan of concern exceed modelled projections.
DUE DILIGENCE USAGE
No third-party due diligence was provided or reviewed in relation to this rating action.
Fitch upgrades the following class:
--$19 million class H to 'AAAsf' from 'AAsf'; Outlook Stable.
Fitch affirms the following classes:
--$3.2 million class G at 'AAAsf'; Outlook Stable;
--$19 million class J at 'BBsf'; Outlook Stable;
--$18.8 million class K at 'Dsf' RE 75;
--$0 million class L at 'Dsf'; RE 0;
--$0 million class M at 'Dsf'; RE 0.
Fitch does not rate class N. Classes A-1, A-2, B, C, D, E, and F have paid in full. Class X was previously withdrawn.
Комментарии